The rumored Apple Watch Ultra equipped with microLED may have died, Osram stock price fell by 40%

News that Apple suddenly canceled orders for microLED displays believed to be used in Apple Watch Ultra caused amsOsram's stock price to fall by 40%.Neither Osram nor Apple confirmed that the Austrian company is the supplier of micro-LED displays for the next-generation Apple Watch Ultra, but the company has been in contact with Apple before and announced in 2023 that the company's revenue will increase in 2025, leading to expectations that Apple will launch Apple Watch Ultra 3 using this technology.

Regardless of whether the customer is Apple or not, amsOsram was very frustrated after it suddenly completely canceled a large microLED order. The company announced that the cancellation of the order was to comply with the regulations of the Swiss Stock Exchange (SIXSwissExchange).

"The shock is still huge because the company has built a purpose-built $1.41 billion factory in Malaysia for this purpose," Chief Executive Aldo Kamper said on a conference call about the filing.

Chief Financial Officer Rainer Irle added: "We think everything is going according to plan." Irle also said that the company is looking to sell the new factory.

In the announcement of the project cancellation, the company said it currently expects to accrue non-cash impairment charges of US$650 million to US$970 million on microLED-related assets and goodwill in the first quarter of fiscal 2024.

The statement also said: "Discussions with relevant customers are still ongoing." Affected by this news, the company's stock price fell by 40%.

The customer for the microLED display is likely to be Apple, as the construction of the factory is also related to Apple, and previous reports indicate that this technology is prepared for the next generation Apple Watch Ultra. The order cancellations are likely related to Apple once again having to delay production of new watches, perhaps until 2027.

However, the same report stated that LG purchased the patents to speed up its ability to develop microLED screens. There are also reports that Apple has been unable to finalize its component supply chain.