The well-placed analyst Ming-Chi Kuo has predicted that Apple is gearing up for an Apple Watch Series 5 launch during the latter part of the year. His latest research note for TF International Securities suggests the loss-making Japan Display will supply OLED displays for that model.
The prediction relating to an Apple Watch Series 5 announcement isn’t exactly breaking new in itself.
The interesting part is the part that the prediction suggests Japan Display will play in the future of Apple Watch, with Kuo suggesting that the company will provide OLED displays for 15-20% of orders during the current calendar year, with that number rising extensively to around the 80% mark in the calendar year 2021. If accurate, it shows Apple’s growing reliance on Japan Display and its focus on making the beleaguered company a more trusted partner.
Japan Display had previously relied heavily on Apple for revenue from its LCD panels – Apple’s orders accounted for approximately 60% of Japan Display’s 2018 revenue. With Apple moving to OLED technology, things have crumbled slightly for the business, resulting in the company having to secure investment earlier this year to the tune of $738 million.
Ming-Chi Kuo also believes that Apple Inc. will tap LG for additional OLED supplies for iPhone and that Tim Cook’s company will bring another provider online in the form of China-based BOE. Companies like Apple want to continually be striving for savings and the best value-for-money whilst also reducing redundancy and a reliance on a single company. Bringing BOE into the supply chain will allow the business to diversify that pack and drive costs down.
The current best guess is that Apple will organize an iPhone-centric event next month on approximately the 10th. The belief is that Apple will use that event to not only introduce the next-generation iPhone but also unveil Apple Watch Series 5. Additional information on that revamped Apple Watch is, however, extremely sparse at the moment. It will be powered by watchOS 6 but it’s also very likely that it will be largely similar to the Series 4 offering in terms of physical product design.
As always, if more develops on this ahead of an announcement, we will be sure to let you know.
(Source: ChinaZ [Google Translate])
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