LG seeks compensation for canceled Apple Watch microLED display panel order | Infinium-tech

According to a new report from Korea, LG is seeking compensation from Apple for the Cupertino company cancelling its order for microLED panels for the Apple Watch Ultra. A microLED Apple Watch Ultra was rumoured for two years, then it was reported in March that Apple had canceled its order for microLED panels.

The order was apparently placed with Osram, but it now appears that LG was also involved, and the Korean company doesn’t want to ignore it – it wants Apple to pay for the “suspension” of the Apple Watch MicroLED project.

The report claims that LG was preparing to carry out the microLED backplane process “at Apple’s informal request”. But then, as we already knew, Apple “effectively cancelled the project to develop a microLED Apple Watch”.

LG has invested “tens of billions” of Korean won in this project, and for reference, one billion won is equivalent to about $730,000. So the maximum amount of tens of billion won would be about $65 million.

LG apparently moved some equipment around, secured space for the microLED backplane process at one of its plants, recruited manpower and formed a task force. Several of LG’s suppliers were also ready to deliver equipment around that time. As a result of Apple canceling the project, LG disbanded its task force and incurred sunk costs to secure space and staff for the microLED backplane process.

Interestingly, Korean industry analysts estimate that if Apple compensates LG for all this, it will pay the Korean company slightly more for the OLED panels it buys for the iPhone and iPad. This is because Apple has never publicly announced that it would develop a microLED Apple Watch, nor has it subsequently canceled the project.

Source (in Korean)