Challenges in Component Supply Chain Hindering Apple’s microLED Production for Watch
Rumors surrounding Apple’s anticipated shift to microLED display technology for its Apple Watch series may need to be tempered, as recent reports indicate a potential delay in this transition. According to a publication from Korea, the arrival of the Apple Watch Ultra featuring a microLED display is now slated for 2027 at the earliest, a significant departure from previous expectations pinpointing a 2025 launch. The primary culprit behind this delay appears to be supply chain challenges plaguing the Cupertino-based tech giant.
The Elec’s report, citing insights from analysts, suggests that even a 2027 release date remains uncertain due to Apple’s ongoing struggle to finalize the component supply chain necessary for microLED display production.
This development contradicts earlier reports that had hinted at a 2025 launch timeline. In fact, Trend Force had projected last year that the debut of the next Apple Watch Ultra would be deferred to 2026, while Ross Young of DSCC had previously speculated that 2025 could mark the advent of microLED technology on the Apple Watch.
At the heart of these supply issues lies the considerable manufacturing costs associated with microLED technology. The report highlights that producing a 2-inch microLED display commands a price tag of $150 (approximately Rs. 12,000), nearly four times the cost of an OLED panel priced at $38 (roughly Rs. 3,000). Incorporating such expensive technology into a wearable device priced at $799 poses a significant challenge for Apple, potentially impacting the company’s revenue streams from the product.
Currently, Apple uses OLED displays for its wearables. The microLED display technology offers improved resolution, lifespan, colour contrast, and the ability to be better seen at an angle compared to traditional panels. The company is widely speculated to replace the current OLED standard with microLED technology in its iPhone, iPad, and Mac units from 2024 onwards.
Apple unveiled the new Apple Watch Ultra 2 alongside the iPhone 15 lineup and Watch Series 9 last year. It is currently available in India for Rs. 89,900 in Alpine Loop, Trail Loop, and Ocean band options.