Apple to unveil new smartwatch in June

The first-generation Apple Watch

By Kim Yoo-chul

Apple plans to unveil a new smartwatch in June this year, officials familiar with the issue said Tuesday.

“The new Apple Watch will hit the market in June because of Apple’s supply chain system,” an official said.

The tech giant will use organic light emitting diode (OLED) displays for the updated watch, he said. LG Display has been named as a primary supplier of the second-generation Apple Watch.

Apple tends to hedge against sourcing risks by having another company handle displays.

Samsung Display also won a separate contract to supply some of its OLED panels to Apple, the officials said.

“Apple will keep LG Display as its primary supplier; but it will have Samsung Display supply some displays,” said another official from a Korean partner of the firm.

OLED screens consume less power than conventional liquid crystal display (LCD) screens, while offering richer colors and darker blacks.

So far, these screens have given Apple greater freedom in product design as they are flexible and can be curved, said Timothy Arcuri, an analyst from the investment bank Cowen.

One of the features of the new Apple Watch is that it will be much slimmer than the previous one after Apple requested LG Innotek and Samsung Electro-Mechanics to supply thinner printed circuit boards (PCB).

LG Display, LG Innotek and Samsung Electro-mechanics declined to comment on the introduction of the new watch.

Apple procures key components to be used in its flagship devices from companies in East Asia, when it unveils new products, affecting the stock prices of LG and Samsung Group’s technology affiliates.

“As Apple is boosting its mobile payment Apple Pay services, there are some expectations that the new stylish and slimmer Apple Watch will awaken idling demand for smartwatches,” the official said.

Last year, Apple was the leader in the smartwatch sector, with a 52 percent global share by shipments.