Apple has reportedly halted its development of microLED displays for the Apple Watch due to high costs and technical challenges, delaying the launch to 2024-2025.
Apple Reorganizing and Job Cuts
Recent reports from Bloomberg suggest Apple has stopped its in-house efforts to create microLED screens for future versions of the Apple Watch. These displays were intended to offer brighter and more vibrant visuals, potentially extending to other products in Apple’s lineup.
Originally intended for future versions of the it’s Watch, these advanced displays were also considered for integration into other Apple product lines.
The company is reorganizing its display engineering teams and is expected to eliminate dozens of roles in the US and Asia.
Affected employees may have the opportunity to transition to other roles within the company, but layoffs with severance packages are also anticipated if new positions cannot be found.
Just weeks after news of its electric car project cancellation, the company has shelved another ambitious venture.
Why the sudden decision?
The decision to cancel the microLED display project, codenamed T159, was reportedly driven by high costs and complexity.
Despite initial plans for a 2020 launch, manufacturing challenges have pushed the timeline to 2024-2025. The technology requires advanced equipment and a complex LED transfer process, leading to delays.
As in the case of the car project, the MNC is offering affected employees the chance to explore other opportunities within the company.
However, for those unable to secure new roles, the prospect of layoffs with severance packages remains a possibility. The electronic firm has refrained from issuing any official statements regarding these developments.
The discontinued display project was part of Apple’s broader strategy to bring more of its technological development processes in-house.
While already customizing displays in its products, it heavily relies on designs from external partners like LG Display Co. and Samsung SDI Co. By internalizing more of this process, Apple aimed to gain a competitive edge over its rivals.
MicroLED technology Advancements
Apple’s foray into MicroLED technology, characterized by millions of tiny light-emitting diodes, represented a significant advancement for the company.
Promising lower power consumption, enhanced color accuracy, and sleeker device designs, MicroLED technology was initially spearheaded within the comapany’s hardware engineering division around seven years ago.
Over time, leadership of the project transitioned to Wei Chen, head of MNC’s display group, before ultimately being placed under the purview of the hardware technologies division, codenamed T159.
Reports indicate that Silicon Valley Giant went as far as establishing its own screen manufacturing facility in Santa Clara, California, in close proximity to its Cupertino headquarters, to streamline the testing of MicroLED screen production.
However, despite these efforts, the termination of the project has resulted in significant job cuts, particularly affecting personnel at the Santa Clara facility and Apple’s display engineering centers in Asia.
Hurdles and Challenges En Route
While the Santa Clara facility continues to operate, recent events have shed light on the considerable challenges associated with MicroLED production.
Despite initial optimism surrounding the technology’s potential integration across it’s product lineup, practical constraints and technological obstacles have necessitated a reevaluation of strategy.
News of the project’s redirection surfaced as suppliers reported losing contracts related to MicroLED development.
Notably, AMS-Osram AG acknowledged that the project’s cancellation would lead to job losses and potential asset divestitures, including a manufacturing plant, with projected write-downs reaching nearly $1 billion.
