Apple, Samsung, LG work on new LCD
Samsung Electronics and LG Display, the world's two largest makers of liquid crystal displays (LCDs), are close to securing big orders from Apple, industry sources said. — Apple is looking to order advanced screens for the next version of its immensely popular tablet computers.
Context & Ripple Effects
The arc here starts six months earlier, when reports that the iPad 2 would stay on LCD effectively killed hopes that Apple would move its tablets to AMOLED panels. That decision left the two dominant Korean LCD makers — Samsung Electronics and LG Display — competing for Apple's tablet business on LCD terms.
Now Korea Times reporting, picked up the same day by 9to5Mac with the added detail that Apple is quality-testing 2048-by-1536 panels, has both firms close to securing large orders for the next iPad's screen. Both claims remain unconfirmed by the companies; if they hold, it means Apple is splitting a flagship product's display supply across its two biggest Korean rivals rather than single-sourcing.
First-order effects
- Samsung Electronics and LG Display each stand to win large-volume orders for the next iPad's high-resolution LCD, giving both a marquee customer for their most advanced panel lines while the order remains unconfirmed by either company or Apple.
- Apple gains leverage by keeping two qualified suppliers in play for one component, letting it play the world's two largest LCD makers against each other on price and yield before committing volumes.
Second-order effects
- With two Korean suppliers racing to pass Apple's qualification at 2048-by-1536, pricing pressure on high-density tablet panels intensifies, squeezing margins for any panel maker that fails to make the cut.
- A dual-source award would set up recurring head-to-head bidding between Samsung and LG Display every time Apple refreshes the iPad, turning the tablet into an annual contest rather than a locked-in franchise for either firm.
Third-order effects
- If Apple keeps qualifying multiple Korean suppliers for each display generation, the panel industry's economics shift toward whoever can fund successive rounds of high-resolution capacity ahead of demand — with Apple's order volume acting as the de facto subsidy for the winning production lines.
- The pattern points to display technology roadmaps being pulled by a single anchor buyer: tablet resolution requirements, not TV or PC demand, dictating where Samsung and LG Display invest next.
The trend: Tablet-scale orders from Apple are becoming the pacing item for LCD makers' high-resolution investments, pushing Samsung and LG Display into recurring competition for the same flagship socket.