LG Display will likely be the sole vendor for the p-OLED displays used by Apple Watch, J.P. Morgan said in a study conducted by Asia Pacific Equity Research, the results of which were published on Feb. 13.
This speculation is based on a forecast by J.P. Morgan’s Apple analyst Rod Hall.
Components are expected to begin shipping in the first quarter of 2015 in preparation for an official launch in 2015.
Apple Watch related revenue is predicted to reach ₩1.4 trillion ($1.2 billion) in 2015 and ₩2.6 trillion ($2.4 billion) in 2016. , or 5 percent and 8 percent of LG’s total revenue respectively. LGD share price is currently slipping due to seasonal variations, but J. P. Morgan expects it to grow well above normal season prices in 2015 and to continue to show upward momentum throughout the year.
J. P. Morgan predicted other changes in the supply chain for the Apple Watch as well. LG Display might also be tasked to assemble the final p-OLED module after other touch panel companies have produced the touch panels. Currently, final assembly and shipping is done entirely by Quanta. SEC is the lead contender to produce the 32 bit AP, with ASE as the top contender to produce the SiP (System-in-Package) module.
Less certain is the producer of the chip package: likely candidates are Amkor Technology and STATS ChipPAC. Kinsus Interconnect Technology is a potential candidate to produce the substrate.
Apple has ordered about 5 to 6 million Apple Watches, an ambitious haul while total sales of Android Wear devices amount to just $720,000.
Filed Under: M2M (machine to machine)
