Apple Watch Ultra
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Apple is believed to be an unnamed customer whose sudden cancellation of orders for micro-LED displays is believed to have was because of the Apple Watch Ultra, Osram shares fell by 40%.
Neither Ams Osram nor Apple have ever confirmed that the Austrian firm is the supplier of the micro-LED displays for the next Apple Watch Ultra. However, it was previously associated with the company and said in 2023 that it would see an increase in revenue in 2025, when the Apple Watch Ultra 3 is expected to launch with the technology.
Whether an Apple customer or not, Ams Osram is now reeling after the seemingly sudden and complete cancellation of a large order for micro-LEDs. The company announced the issue of securities to comply with the requirements of the SIX Swiss Exchange.
“The shock still runs deep,” CEO Aldo Camper said on a conference call about the filing. The company has already built a $1.41 billion purpose-built plant in Malaysia.
“We thought everything was going according to plan,” added CFO Rainer Ihrle. Irle also said the company wants to sell the new plant.
In the project cancellation announcement, the company said it now expects to record non-cash asset and goodwill impairment charges related to microLED of between $650 million and $970 million in the first quarter of fiscal 2024.
“Negotiations with the relevant client are ongoing,” the statement continues. The company's shares fell 40% on this news.
If Apple is the customer for the micro-LEDs, and it's likely that the plant's construction was also Apple-related, previous reports suggest the technology was intended for the next Apple Watch Ultra. It's possible that the order cancellation is due to the fact that Apple has again had to delay the release of a new watch, possibly until 2027.
However, the same reports stated that LG specifically bought patents. to speed up the development of micro-LED screens. It was also alleged that Apple was unable to complete the component supply chain.
