Apple unusually extends OLED panel stockpiling period to lock in component costs ahead of time

To cope with the significant pressure from rising prices of information technology components, Apple has proactively extended its inventory holding period for display panels since the second quarter of this year, leading to a notable increase in OLED panel shipments from Korean display companies such as Samsung Display and LG Display.

According to industry insiders, Apple has extended its display panel inventory holding period from the original four weeks to six weeks.

A supply chain source familiar with the matter stated: "Recently, raw material prices have risen rapidly, and the surge in storage chip prices has also affected peripheral components, with almost all parts facing cost pressure. To stabilize procurement costs, Apple has chosen to increase OLED panel stockpiling in advance."

Extending the inventory period means locking in a larger procurement volume. In the display panel business, Apple can only achieve this strategic goal by placing additional OLED panel orders.

It is worth noting that the second quarter has traditionally been the off-season for Apple's supply chain. Since new iPhone models are typically released in September each year, component orders in the second quarter have often seen a significant sequential decline in previous years.

This year, Apple has bucked the trend by extending its stockpiling period, with the core intention of locking in costs in advance and avoiding subsequent price increase risks.

In June this year, Apple officially announced price increases for some products such as MacBook and iPad, and the industry widely predicts that price hikes for product lines like iPhone, Apple Watch, and AirPods are also inevitable.

A senior display industry expert commented: "Chip inflation is unlikely to ease in the short term, and extending the inventory stockpiling period will not be a temporary measure but will evolve into a long-term procurement strategy for Apple. The iPhone 18 Pro and iPhone 18 Pro Max, set to launch next month, are also expected to continue the longer stockpiling period, and shipments from Korean panel manufacturers are likely to keep rising."