LG is a longtime supplier of displays to Apple, such as its Studio Display line, and is investing heavily in developing promising technologies for new Apple devices. One such development was the MicroLED display for the Apple Watch Ultra. But Apple abandoned this project, and now LG wants compensation for the costs incurred.
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Initially, using a MicroLED display in the Apple Watch Ultra seemed like a promising idea – the advantages of the technology compared to MiniLED are high-quality color rendition, high brightness and energy efficiency. MicroLED outperforms OLED in backlight brightness while consuming less power. Unfortunately, all these advantages were offset by the expected significant costs of scaling production, which forced Apple to abandon the project, despite the agreements.
LG has invested heavily in product development, including acquiring 14 US patents related to MicroLED screen technologies. Moreover, the company has attracted other partners and investors to the development, who will now also suffer losses. Apple’s refusal will lead to the termination of several large contracts, downtime of expensive equipment and repurposing of specialists already hired to participate in the project.
Given the above, LG’s desire to receive compensation for the costs incurred seems self-evident.