Apple to Transition Away from Samsung, Start Producing Own Screens in 2024

Apple is planning to start using its own custom displays in mobile devices as early as 2024. This move would reduce its reliance on technology partners like Samsung and LG, and bring more components in-house.

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Apple is planning to replace the OLED display in its high-end Apple Watches with a new microLED display by the end of next year, according to people familiar with the matter. The switch to microLED would represent a significant upgrade for the Apple Watch, and Apple is also planning to eventually bring microLED displays to other devices, including the iPhone.

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Apple is making a major push to replace its suppliers with homegrown parts, in a move that will give the company more control over the design and capabilities of its products. The tech giant has already dropped Intel Corp. chips in its Mac computers in favor of in-house designs, and now plans to do the same with the key wireless components in its iPhones.

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Apple, based in Cupertino, California, declined to comment when asked for a statement.
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Samsung is a leading manufacturer of displays, and has been producing its own version of microLED for TVs. However, by bringing the screens in-house, Apple could better customize its devices and maintain a stronger hold on its supply chain.

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Apple has been working on switching to its own screens for years. Bloomberg first reported in 2018 that the company was planning to design its own displays, starting with the Apple Watch. This would deal a blow to Samsung Display Co. and LG Display Co., the two main suppliers of the watch’s screens.

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LG Display's stock took a hit on Wednesday after Bloomberg reported that the company is facing production delays for its OLED panels. Samsung Electronics Co., which also uses OLED panels in its products, saw its stock prices dip in morning trading in Seoul.

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Apple is working on a new project that is being led by Wei Chen. This project is testing microLED displays on an update to the Apple Watch Ultra. The Apple Watch Ultra is a new high-end sports watch.

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The next generation of Apple Watches will feature brighter, more vibrant displays that can be seen more easily from an angle. According to those who have seen them, the displays make content appear as if it is painted on top of the glass. The project is still under wraps, so those who have seen the displays have asked to remain anonymous.

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Apple is set to release its first microLED displays, which have been designed and developed entirely in-house. This marks a departure from the company's current practice of sourcing screens from a range of manufacturers, including Japan Display Inc., Sharp Corp. and BOE Technology Group Co., in addition to Samsung and LG.
Neither Samsung nor LG would comment when asked about the situation. According to data compiled by Bloomberg, Apple accounts for 36% of LG Display's revenue. This means that Samsung, which competes with Apple in the smartphone market in addition to serving as a supplier, gets about 6.6% of its sales from the iPhone maker.
Apple's work on microLED screens, codenamed T159, ramped up around 2018, with a goal to begin switching to the new technology as early as 2020. However, the project languished due to high costs and technical challenges, according to people involved in the work. Apple initially aimed to include microLED in large displays, but concerns about the technology led the company to focus instead on its watch - whose screens measure about 2 inches - as its first mobile device with microLED capabilities.

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Apple's target of releasing new devices in 2024 could potentially slip until 2025, according to some people involved in the project. The company may also just offer a limited supply of the new devices to get the transition started.

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Apple has designed the new displays and devised their manufacturing process, but is likely to rely on an outside supplier for mass production. The company operates a 62,000-square-foot facility in Santa Clara, California, where it conducts test manufacturing of the screens. It has a similar research and development campus in Taiwan.
Apple is always looking for new ways to improve its products and stay ahead of the competition. Part of this process is display research, which helps the company develop new and innovative display technologies.

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Apple has invested billions of dollars in its self-driving car project, which is considered to be one of the company's most critical initiatives. Alongside its work on an electric car, a mixed-reality headset, and key health features for its watches, Apple is committed to making its self-driving car project a success. The company spent about $26 billion on research and development in fiscal 2022, and it is clear that self-driving cars are a major focus for the company moving forward.

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The most significant changes coming to the Apple Watch in the near term are new displays. The company plans to introduce new models at the end of this year, but they will be modest updates focused on faster chips and minor health sensor upgrades. Apple hasn’t updated the main processor inside of its watch for three years.

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Apple is working on customizing the displays for its upcoming headset, which will use similar technology to the microLED screens coming to the Apple Watch. While it will take years before Apple moves the iPhone to microLED, it plans to bring OLED technology to the iPad with the Pro model in 2024.

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Apple's shift to microLED technology has been in the works for many years. It all started back in 2014 when Apple purchased LuxVue, a startup that was pioneering microLED technology. The development of Apple's own microLED screens has been led by veteran executive Lynn Youngs within the company's hardware engineering division. However, two years ago the work was shifted to Srouji, who oversees Apple's custom chip group.