Apple reportedly abandons ambitious in-house smartwatch display project, redirects resources

According to a Bloomberg report, sources privy to the matter have revealed that in recent weeks, Apple has ceased its in-house efforts to pioneer screens utilising microLED technology. These advanced displays, renowned for their heightened brightness and vibrant visuals, were earmarked for integration into future iterations of the Apple , with potential applications across other product lines.

However, the formidable cost and technical intricacies inherent in the project eventually rendered it unfeasible. Consequently, Apple is currently undertaking a restructuring of its display engineering teams, resulting in the elimination of numerous positions across the United States and Asia, as disclosed by anonymous insiders to Bloomberg.

This decision to shutter the project coincides with Apple’s earlier move to discontinue work on a self-driving car. In both instances, Apple has extended opportunities for affected employees to seek alternative roles within the company. Nonetheless, for those unable to secure new positions, the inevitability of lay-offs accompanied by severance packages looms large. Apple has declined to provide official commentary on the matter.

The terminated display initiative formed part of Apple’s broader strategy to internalise more of its technological development processes. Despite already customising displays in its products, Apple relies heavily on designs from external partners such as LG Display Co. and Samsung SDI Co. By internalising more of this process, Apple aspired to gain a competitive advantage over its rivals.

MicroLED technology, constructed from millions of minute light-emitting diodes, held particular promise for Apple. It offers lower power consumption, superior colour reproduction, and facilitates slimmer device designs. The endeavour commenced approximately seven years ago within Apple’s hardware engineering division before being entrusted to Wei Chen, the head of Apple’s display group. Codenamed T159, the project was later transferred to Apple’s hardware technologies division.

According to reports, Apple even established its own screen manufacturing facility in Santa Clara, California, adjacent to its Cupertino headquarters, to facilitate the testing of microLED screen production. However, many of the job cuts resulting from the project’s termination pertain to personnel at this site, as well as Apple’s display engineering centres in Asia.

While the Santa Clara facility remains operational, recent developments have underscored the formidable challenges associated with microLED production. Despite Apple’s initial optimism regarding the technology’s integration across its product portfolio, the realities of manufacturing limitations and technological hurdles have necessitated a strategic pivot.

News of the project’s shift emerged when suppliers reported losing microLED-related contracts. Notably, AMS-Osram AG disclosed that the cancellation would precipitate job cuts and potential asset divestitures, including a manufacturing plant, with anticipated write-downs nearing $1 billion.