Apple’s suppliers of display screens in Asia have been going through a rough patch as the shares of the suppliers in the region have recently gone down. Electronics Times in South Korea reported that Apple Inc. would be overhauling its display by using only next generation display screens in the upcoming models. A number of analysts have expounded that such a revolutionary transition is not possible so swiftly but the shares of the display suppliers in Asia have evidently fallen short. Sharp Corp. suffered a 4.3% decline in shares while Japan Display Inc. hit an all time low of 21% decline in shares since its inception in 2014.
Basis of Problem
Japan Display Inc. and Sharp Corp. have been supplying display screens for Apple Inc. quite efficiently so far. However, the companies have failed to mass produce OLEDs and have only mastered the supply of LCD screens. Hence, Apple’s abrupt shift from LCD to OLED screens would disrupt the functioning of the companies and may result in further decline in shares. Experts believe that the voluminous amount of phones produced by Apple would make it difficult to make a complete transition to light-emitting diode screens. Samsung Display Co. had been catering to the need for OLED screens for Apple’s high-end devices. However, the former also supplies to Samsung Electronics Co. which limits the total stock, and hence, Apple cannot entirely rely on Samsung Display Co.
Future of OLEDs
Although analysts have countered the possibility of Apple to make a complete transition from LCD to OLED screens, the demand of the latter is certainly expected to increase over the coming years.