The smartwatch display market is currently dominated by LG, but not thanks to the G Round or any of the company’s own products. In fact LG Display recorded revenues of over $186 million throughout Q1 2015 thanks to the Apple Watch, while the entire smartwatch market is estimated to be worth roughly $204 million.
Now let’s take a step back and look at the bigger picture, in case some of our readers are unfamiliar with LG’s involvement in the production of the Watch. Long story short, LG Display is the sole manufacturer of P-OLED panels for the Apple wearable, which puts it in a very advantageous spot given the Watch’s success. But more to the matter at hand, it looks like LG might continue to be Apple’s sole display supplier even for the next gen Watch. More details below.
Next Gen Apple Watch Displays to be Supplied Entirely by LG
According to a fresh report from South Korea, Apple and LG have agreed to continue their collaboration at least throughout the development of the second gen Apple Watch. Reportedly, the Korean tech giant will be the sole display supplier for the Watch 2 which, according to the rumors, should be released in 2016.
Sources in Korea add that Apple did not make this decision lightly. In fact the Cupertino-based giant considered multiple suppliers for the next gen Watch’s display, but eventually settled with LG as an exclusive partner. This strategy goes against Apple’s usual M.O. of using multiple suppliers for a specific component, but sources add that Apple settled on this decision because LG’ performance on the P-OLED smartwatch display market is unmatched, offering high quality products and good yield.
Whether or not these events will help LG into further consolidating its own market spot on the Android Wear market remains to be seen, but a close partnership with Apple can only mean good things for Korea’s 2nd largest smartphone maker.