The Apple Watch series is known to come with advanced software and hardware advancements for its users with every generation. It was rumoured that the Cupertino-based tech giant had made plans to build a micro-LED display for upcoming Apple Watches. However, because of the increasing production cost, Apple had to reportedly scrap that project, which even resulted in the termination of several jobs at Apple’s screen manufacturing facility in California.
Display supplier LG was also set to play a key role in Apple’s planned micro-LED Apple Watch project, and had made several heavy investments. However, now according to a new report by a South Korean publication The Elec, LG is said to be seeking compensation for the cancellation of this project.
The report also adds that the sudden termination from Apple has left LG Display with substantial sunk costs, including idle equipment and a disbanded task force. This also meant that LG Display had put out a significant amount of funds over the years to prepare for the microLED backplane's production. Therefore, to recoup these heavy losses, the display maker is seeking compensation.
Further, if Apple were to compensate LG for all this, then there are chances that they will pay an additional cost to the Korean company for the current OLED panels shipment it is doing for its iPads and iPhones.
Apple is no stranger to compensating suppliers over display orders, as the company has also compensated Samsung in the past due to non-obligation of buying the contracted minimum orders of OLED panels for its previous iPhones.
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