According to Bloomberg's Mark Gurman, Apple has ended its project to develop its own microLED displays, which is completely different from his previous reports on the development of the technology. Apple has invested billions of dollars in developing microLED displays and plans to first use microLED technology on Apple Watch Ultra.
Because the cost of MicroLED is too high and the design is too complex, Apple is currently reorganizing its display engineering team and laying off employees in the United States and Asia. Some of the laid-off employees may find other positions with the company, and others will receive severance packages.
Rumors that Apple had canceled plans to use microLED for the Apple Watch first appeared in February this year, when supplier amsOSRAM said that a "groundbreaking project" related to microLED had been cancelled. Soon after, there were rumors that Apple had terminated its partnership with Kulicke & Soffa, another advanced display market company.
Analyst Ming-Chi Kuo and Display Supply Chain Consultants both confirmed that Apple had canceled development of the microLED Apple Watch following these rumors, but Gurman claimed that Apple is still developing the device. Gurman said in a now-deleted tweet that Osram was "a supplier" to the project and that Apple was working with several other suppliers. "I doubt it was cancelled," he wrote.
DigiTimes and ETNews also pointed out that amsOSRAM's products were replaced due to performance degradation and Apple had found another supplier, but it now appears that this information is incorrect.
MicroLED technology uses tiny LEDs on individual pixels. It is more energy efficient, has higher contrast and faster response time than traditional LED. Colors are brighter and better, and there's no risk of burnout like OLED. Apple is said to have abandoned the project because it wasn't financially viable.
Gurman claimed that Apple will stick with OLED display technology on the Apple Watch "for now" but that the company is "considering microLED on other projects." Apple is "identifying" potential new suppliers and processes for microLED, but "it's unlikely to happen anytime soon."