According to a new report from Korea, LG is seeking compensation from Apple for the Cupertino company's cancellation of its order for microLED panels for the Apple Watch Ultra. The rumor of a microLED display for the Apple Watch Ultra had been circulating for a few years before Apple backed out of its microLED panel order in March.
This order was apparently placed with Osram, but it now appears that LG is also involved, and the Korean company is not letting the opportunity pass: it wants Apple to pay for the “suspension” of the Apple Watch microLED project.
According to the report, LG was preparing to implement the “microLED backplane process at the unofficial request of Apple.” But then, as we already knew, Apple “effectively canceled plans to develop a microLED Apple Watch.”
LG has invested “tens of billions” of Korean won in the project, and for reference, one billion won is equivalent to about $730,000. So, several tens of billions of won would amount to a maximum of about $65 million.
LG apparently moved some equipment, secured space for the microLED backplane process at one of its factories, recruited labor, and formed a task force. Several LG suppliers were also preparing to ship equipment at this time. As a result of Apple’s cancellation of the project, LG disbanded its task force and incurred sunk costs to secure space and personnel for the microLED backplane process.
Interestingly, Korean industry analysts speculate that if Apple were to compensate LG for all of this, it would most likely pay the Korean company a bit more for the OLED panels it buys from it for iPhones and iPads. Indeed, Apple never publicly announced that it would develop a microLED Apple Watch, nor did it subsequently cancel the project.
Source (in Korean)