Why LG may have to pay $1.4 billion to stop making OLED screens for iPad Pro

LG Display is reportedly shifting its production focus from iPad Pro screens to iPhone screens. This move comes from the Korean tech giant due to lower-than-expected demand for the 2024 iPad Pro with its OLED display.
According to a report by The Elec, this move which is estimated to cost LG $1.4 billion will allow the company to repurpose the existing iPad Pro production line to manufacture iPhone screens instead.
Despite the investment, LG Display expects to save money and increase its iPhone screen production capacity by 15,000 units per month. The company originally invested $2.3 billion in the iPad Pro screen production line.

The iPhone and iPad Pro screens differ not only in size but also in manufacturing processes. For example, the iPad Pro employs a two-tandem OLED panel and a glass substrate, while the iPhone uses a single OLED panel and a polyimide substrate.
Producing the iPhone display reportedly requires specialised equipment for touch screen fabrication. These differences are significant enough that LG Display will need Apple's approval to proceed.
The report also claims that LG Display is planning to establish a production line capable of alternating between the two screen types. However, with an inventory of iPad Pro screens on hand, the company is expected to shift production to the iPhone as soon as feasible.
The OLED screen was a standout feature of the 2024 iPad Pro, alongside its M4 processor and significantly slimmer design.
Previously, the iPad Pro was the only iPad to offer a larger 12.9-inch display, but the more affordable and slower iPad Air now includes this option.
As a result, the iPad Air may have captured some of the iPad Pro's market share, even with its M2 processor. Despite a long-term decline in sales, the iPad remains Apple's second most popular device.