LG, a key supplier for Apple’s display panels, is eyeing a shift in its production strategy due to declining iPad Pro sales. According to reports from The Elec, LG has proposed retrofitting its iPad screen supply lines to produce iPhone displays and is currently awaiting Apple’s approval for the retooling.
The 11-inch and 13-inch iPad Pro models, despite their OLED displays and high-performance processors, have failed to meet sales expectations. Initial projections for the first OLED iPad models aimed for 10 million units, but that figure has been revised to just 6.7 million due to weaker demand. Particularly, the 13-inch iPad Pro, for which LG supplies OLED screens, has seen a significant sales slump.
On the contrary, Apple’s iPhone remains in high demand, and LG is anticipating orders for 60 million iPhone screens this year, compared to 52 million in the previous year. Retrofitting its iPad production line to manufacture iPhone screens offers LG a cost-effective solution to address this growing demand without building an entirely new production line.
The retooling process is expected to be relatively smooth, as LG already has most of the necessary equipment in place. The main modification involves adjusting the touchscreen layering process, allowing the larger OLED sheets originally intended for iPads to be used for the smaller iPhone 16 series screens. This shift reflects LG’s strategy to remain flexible and responsive to market trends, especially as Apple’s Pro tablet line struggles while the iPhone continues to thrive.
Notably, LG’s expertise in OLED technology for electric vehicles, such as Mercedes’ pillar-to-pillar Hyperscreen, plays a key role in this transition. By adapting its iPad production lines, LG can continue supplying Apple while maximizing its resources during fluctuating demand for iPad Pros.
