Due to the substantial investments it’s already made, LG Display is seeking compensation from Apple following the cancelation of the microLED display project for Apple Watch, The Elec reports.
Hartley Charlton for MacRumors:
As a result of the device’s cancelation, LG Display has apparently been left with substantial sunk costs, including the expense of purchasing 14 U.S. patents related to microLED technology from Taiwan’s Ultra Display. The company now faces potential claims from its equipment partners, some of whom had also invested in the project without formal contracts in place. LG also moved equipment from Gumi in Gyeongsangbuk-do to Paju in Gyeonggi-do, secured space for the microLED backplane process, and recruited specialized personnel to form a task force dedicated to the project. Overall, LG reportedly spent hundreds of billions of won to prepare for the microLED Apple Watch.
Apple’s decision to cancel the project was reportedly based on concerns about the economic viability of microLED technology for the Apple Watch.
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MacDailyNews Take: No contract, LG? Then you’re left with the cost of doing business.
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They might not have had a contract but bad faith in business is not a good look, especially if you are the worlds largest company… it automatically puts u in the same business category at toxic trump.
LG now has an awesomely expensive infrastructure in place due to Apple, but it can be used to develop prototype micro-LED screens for watches, phones and tablets, and perhaps even HDTVs, that they could and should use to entice personal electronics firms other than Apple. Should Apple then want to play again, LG could invoke the business practice known as “for you it’s pay to play” thruwhich Apple would be charged a huge upfront ‘membership fee’ to be able to participate in obtaining those new and superior displays. microLED’s are indeed the displays of the future. Hey Apple, try to get some company in the future to invest heavily in one of your ‘advanced’ ideas without some form of upfront cost sharing. Your cutthroat reputation now will always precede you. Good luck.
Apple is well known for screwing over companies like this. Although they have more than enough money to do right in these cases they usually don’t. Hopefully LG can utilize their investment to sell to Apple’s competitors. I use to be a strong supporter of Apple through thick and thin, but they have chipped away at my enthusiasm and loyalty year after year since the death of Steve Jobs. They are all about making profit and stock valuations over high quality and reliable products. If they were to fall tomorrow I wouldn’t shed a tear.