LG Display has effectively taken control of the OLED panel market for the Apple Watch after Japan Display Inc. exited the business amid financial struggles and restructuring.
According to market tracker Omdia, LG Display’s share of the global smartwatch OLED panel market rose to 43.7 percent last year, up from 39.7 percent a year earlier — its highest on record. Industry sources say the gain reflects LG Display becoming the sole supplier of OLED panels for the Apple Watch.
JDI’s shipments of Apple Watch panels collapsed from 850,000 units in the first quarter to just 5,000 in the third, before falling to zero in the fourth quarter, marking a full exit from the segment.
LG Display moved quickly to fill the gap. Shipments rose from 5.8 million units in the first quarter to 7.8 million in the second and 11.2 million in the third. In the fourth quarter, following JDI’s withdrawal, the company shipped 7.1 million units, fully absorbing the displaced volume.
Analysts say the company’s near-monopoly position is underpinned by its lead in LTPO OLED technology, a key component in premium smartwatches.
“JDI’s withdrawal from the North American client’s smartwatch OLED business and its decision to sell its Mobara facilities have strengthened LG Display’s position,” said Jung Won-seok, an analyst at IM Securities. “It is also expected to improve profitability.”
LTPO OLED panels allow refresh rates to drop as low as 1 hertz, significantly reducing power consumption and enabling always-on display features without heavy battery drain. The technology’s high entry barrier has helped LG Display secure supply across the entire Apple Watch lineup, from entry-level SE models to high-end Ultra versions.
The stronger market position is feeding into earnings expectations. According to FnGuide, consensus forecasts put LG Display’s operating profit at 1.3 trillion won ($858 million) this year, up 152 percent from 517 billion won last year.
The company said it will continue to invest for growth while maintaining financial discipline. It plans capital expenditure in the mid-2 trillion won range this year, focusing on upgrading existing production lines and strengthening research and development in next-generation display technologies rather than expanding new capacity.
yeeun@heraldcorp.com
