Last week we saw two sources say that Apple had dropped its plans for a microLED display for its Apple Watch Ultra wearable. Now comes two new reports that contradict the previous reports.
Last week, Apple supplier arms OSRAM announced that it would “re-assess its microLED strategy” after a “cornerstone project” was “unexpectedly canceled” that day. Following that announcement, the company’s stock plunged precipitously (40%).
Apple analyst Ming-Chi Kuo later weighed in on the matter, confirming that Apple has canceled the project for the “foreseeable future.”
However, two new reports contradict the two previous reports, as DigiTimes and ETNews report that Apple still has multiple internal teams dedicated to microLED projects and is actively seeking alternative suppliers. “The OSRAM LED chip may have been replaced due to a drop in performance, and Apple may have already found a replacement for Taiwan or China, which is ahead in the microLED field,” said ETNews.
Taiwan’s AU Optronics (AUO) and PlayNitride are said to be among the leading candidates to fulfill Apple’s production needs, according to the DigiTimes report. AUO has just begun mass production of microLED watch display panels, while PayNitride is mass producing related chips.
While talks between Apple and PlayNitride have reportedly stumbled, due to scale limitations, AUO is viewed as a “promising partner,” due to its advancements in microLED display applications.
Last week, Apple industry analyst Ming-Chi Kuo commented on the situation, and confirmed that Apple has indeed canceled the project for the “foreseeable future.” The analyst said that microLED production costs are currently “too high” for the project to be “economically viable.”
“My latest survey indicates that Apple has canceled the Micro LED Apple Watch projects because Apple thinks that Micro LED can’t add significant value to this product, and the production costs are too high to make it economically viable,” said Kuo.
ams OSRAM was Apple’s exclusive LED chip supplier for the project at the time it was canceled, said Kuo. He said Apple has “no plans” to mass-produce microLED devices for the “foreseeable future.”