The anticipated upgrade for the next iteration of the Apple Watch Ultra was expected to involve a shift to microLED technology. Recently, there’s been news from a supplier hinting that Apple’s plans for their microLED device might hit some roadblocks. It seems like the timeline for introducing this device could be pushed back further than expected by the company.
All You Need to Know About Apple Watch Ultra and microLED
Osram AG put out a statement discussing how they are reassessing their strategy for microLED technology after a key project in their program was unexpectedly terminated. While they didn’t directly mention the Apple Watch Ultra in their statement the significant drop in their share price by 40% following the announcement suggests that there could be an impact on their earnings tied to the production of microLED panels.
Based on information shared with MacRumors by Counterpoint Research Display Supply Chain Consultants it is believed that issues like production yields and high manufacturing costs related to microLED technology may have led to the cancellation of the microLED Apple Watch Ultra. Estimates show that producing microLED panels costs around three times more than screens. If Apple had gone ahead with these panels for the watch it’s unlikely they could have kept the price similar to the previous model.
It’s unclear, at this point whether Apple will search for another supplier for microLED technology or if they will change course entirely and stick with screens for their model. Although they built a facility in Malaysia for $1.41 billion to manufacture these screens in quantities it seems that the original plan did not come to fruition.
Considering the time-consuming process of identifying a new supplier, establishing a factory, and evaluating microLED samples, it is probable that the third iteration of the Apple Watch Ultra will stick with OLED technology. Moreover, the industry’s lack of fervour for a microLED Apple Watch Ultra, coupled with the considerable costs and challenges associated with the technology, may outweigh any potential benefits.
