As Apple continues to face challenges in the tablet market, LG is making strategic moves to redirect its resources towards iPhone display production. The company plans to enhance its capacity in response to Apple's anticipated demand for new iPhone models, following disappointing iPad sales.
The South Korean tech giant has expressed that it needs to invest significantly to establish a new production line akin to its existing E6-1, E6-2, and E6-3 lines. This expenditure is comparable to what was spent on their IT OLED line, which is expected to now run below capacity due to flat sales projections for iPads in 2025, after a lackluster performance in 2024.
In an effort to optimize its operations and increase its contribution to Apple's iPhone screen supply, LG is considering adding additional touch layer deposition equipment. This move could see LG's iPhone display output rise from 52 million panels in 2023 and 64 million in the previous year to over 70 million by 2025.
However, LG's plans hinge on Apple's approval for the dual use of the iPad OLED display line for iPhone production. With a deadline set for February, LG must present a compelling case to secure more business with Apple. The tech giant is expected to unveil five new iPhone models in 2025, intensifying the urgency for LG to adapt to the shifting dynamics of display production.
