Apple's new iPhone models abandon LCD displays, and two Japanese companies cannot join the supply chain

Recently, according to the Nikkei Asian Review, Apple has made a major adjustment in its display strategy and decided to fully switch to organic light-emitting diode (OLED) displays in future iPhones. This move has "excluded" two Japanese manufacturers from Apple's supply chain.

Currently, Japan Display Inc. (JDI) and Sharp supply LCD displays for the third-generation iPhone SE (current version). However, since neither JDI nor Sharp has mass-produced OLED screens for smartphones, this means they will lose Apple's orders.

Looking back in history, the turning point came in 2016 when Apple's flagship models began to switch to OLED displays, which disrupted JDI's panel shipment plans. Sharp fell into an operating crisis due to excessive investment in large-size liquid crystal panels for televisions.

In the field of OLED displays, companies from South Korea and China occupy a large market share. For higher-priced models, Apple will purchase OLED displays from South Korea's Samsung Electronics and LG Display as well as China's BOE. At this stage, South Korea's Samsung Electronics accounts for about half of the iPhone OLED display market share, and China's BOE is about 20%.

Apple's decision not only has a major impact on the two Japanese companies but also triggers a chain reaction in the global display supply chain, marking another major change in mobile phone display technology. In the future, display manufacturers may further increase investment in OLED technology research and development and production to adapt to market changes and demands. Apple's decision will also continue to affect the development pattern of the global smartphone market.