The continuous weak demand for the OLED iPad Pro has forced LG Display to refit its production facilities to assemble OLED panels for the iPhone instead, reads a new report from The Elec.
The facility in question is dedicated to assembling OLED displays for tablets and PCs, with the new iPad Pro likely one of the biggest beneficiaries of the production line. The facility has seen its utilization drop in recent months as demand for the OLED iPad Pro continues to drop. Rather than shutting down the facility, which reportedly cost $2.3 billion in investments to build, LG Display is considering readapting it to manufacture iPhone displays.
While OLED display technologies differ between the iPhone and the iPad, refitting the facility is much cheaper than building a new one, which could cost around $1.5 billion. It would also be much faster as a new facility would take years before it could be part of the iPhone’s supply chain.
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However, LG Display’s refitting plans aren’t final yet as Apple has to approve the decision before any changes are made to the production line. The Korean giant reportedly has enough inventory for the OLED iPad Pro through February, with Apple expected to make a final decision before then. The move could also help LG Display increase its share of the iPhone display chain to 70 million units this year, up from 63-66 million in 2024.
News of weaker-than-expected demand for the OLED iPad Pro has been extensively covered. Most analysts expected Apple to ship around 10 million OLED iPad Pro units last year. However, that figure was revised down significantly a few months after the device’s introduction in May 2024, with most analysts agreeing that shipments have not exceeded 6-7 million at best.
