LG is seeking financial compensation from Apple following the cancellation of an order for micro-LED panels intended for the Watch Ultra. The Mac enthusiasts had to cancel its orders due to production challenges that made it impractical to meet the required quantities.
Originally, the Korean electronics giant was preparing to handle the micro-LED backplane process at the fruit company’s request. However, Apple decided to scrap the project. LG had invested heavily in this project, spending billions of Korean Won that translates up to about US$65 million (~RM290 million).
The cancellation not only affected LG’s plans but also led to substantial costs sinking, including expenses related to space and staffing that had already been committed.
The situation resulted in LG disbanding its task force and incurring losses due to the abrupt halt in the project.
Although there may not be a clear legal obligation for the company from Cupertino to compensate the South Korean giants, it is anticipated that the Californian conglomerate may address the issue by increasing the price it pays for OLED displays, thus attempting to maintain a positive relationship with its suppliers.
(Source: 9to5Mac, MacRumors, Apple Insider)
