Apple has reportedly halted its internal development efforts focused on microLED displays for smartwatches, according to a report by Bloomberg’s Mark Gurman. 

Apple is said to have invested billions in developing the technology, with plans to use it first on the Apple Watch Ultra models. However, Gurman’s recent report suggests that microLED was too costly and complex for Apple to pursue.

The decision to cancel the project has resulted in a reorganization of Apple’s display engineering teams and layoffs in the U.S. and Asia. While some employees may find alternate roles within the company, others will be provided with severance packages.

News of the cancellation first emerged in earlier this month when supplier ams OSRAM indicated that a major microLED project had been discontinued. Subsequent industry rumblings further suggested a downturn in Apple’s microLED development efforts.

MicroLED is an advanced display technology that uses microscopic LEDs for individual pixels. As a result, it has several advantages over traditional LED and OLEDs including improved energy efficiency, contrast, color rendering, and response times. 

Importantly, it also eliminates the risk of burn-in associated with OLED displays. All these benefits might have lured Apple to use MicroLED display but the project’s cancelation is believed to be driven primarily by cost concerns.

Despite the setback, Apple is likely to remain interested in microLED. Gurman notes that the company will continue to evaluate potential external suppliers and new manufacturing processes, but it’s unclear when or if microLED will appear in future Apple products. For now, you can expect Apple Watch devices to continue using OLED displays for at least a year or two.

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