# The Convergence of Technology and Profitability: The Timing of Innovation
Although the technology is present, it must first prove profitable before production begins.
In the rapidly evolving tech landscape, innovation is frequently propelled by access to novel materials and methodologies. Nonetheless, merely having a technology at our disposal doesn’t guarantee its swift entry into consumer markets. The key factor is profitability, which significantly influences the decision-making process on when, or if, a new technology will be embraced. This principle holds true across various sectors, ranging from smartphones to wearables and more.
## The Example of MicroLED: An Illustrative Case
Consider **MicroLED** technology as a prime example. MicroLED is often touted as the next major breakthrough in display technology, presenting various benefits compared to current OLED displays. MicroLED screens are brighter, consume less energy, boast a longer lifespan, and are less susceptible to problems like burn-in. On the surface, it appears to be the ideal display option for devices ranging from smartphones to smartwatches.
However, despite its numerous benefits, MicroLED has yet to infiltrate mainstream consumer devices. What’s the reason? The production costs hold the answer. Currently, creating MicroLED displays involves a high-cost and intricate process, particularly for smaller gadgets like smartwatches, where the required precision heightens the probability of manufacturing complications. These obstacles escalate production expenses, making it challenging for businesses to price their products at a level consumers are willing to accept.
Consequently, even though the technology is ready, it remains mostly inaccessible for various consumer applications. Companies such as Apple, Samsung, and Garmin are investigating MicroLED usage but are biding their time until production costs are reduced to include it in their products. For the time being, OLED displays will continue to lead the marketplace.
## The Profitability Equation: Production Costs vs. Sale Profits
This brings us to a core tenet of product development: **production cost versus profit gained per sale**. Each manufacturer, whether it’s Apple, Samsung, or any other tech leader, has to evaluate the cost of bringing new technology to life against the potential profitability of selling it. If production costs are exorbitant and profit margins are minimal, the technology will likely never reach the market, regardless of how advanced or advantageous it may be.
This is the reason behind the lengthy wait for **flexible OLED displays** to gain traction and why foldable phones took an even longer time to become available for purchase. The technology was available, but mass production costs were prohibitive. It wasn’t until manufacturers could generate these displays economically that foldable phones became feasible. Even now, foldable phones carry hefty price tags, and companies like Apple have yet to embrace this trend, probably because they have not discovered a method to ensure favorable profit margins.
## Apple’s Hesitation with Foldables: A Profit Margin Insight
Apple serves as a notable example of a corporation that prioritizes profitability over rushing to be first in the market with innovative technologies. The company could produce a foldable iPhone tomorrow if it chose to. The technology is ready—OLED displays are capable, and the challenges of flexible glass have largely been addressed. Still, Apple has opted not to launch a foldable iPhone. Why is that?
The answer resides in **profit margins**. The iPhone stands as Apple’s most lucrative product, and the income it generates enables the company to invest in other sectors such as software innovation and research for future initiatives. A foldable iPhone would likely enjoy good sales, but Apple probably believes that the profit margins for such a device would not justify its development at this point. In essence, Apple will hold off on releasing a foldable iPhone until it can achieve sufficient revenue from each unit sold to sustain its high-profit margins.
## The Importance of R&D and Market Readiness
Another element that affects when a technology transitions into consumer products is the emphasis on **research and development (R&D)**. Companies such as Apple, Samsung, and Google allocate billions annually to R&D, delving into new technologies and strategizing ways to make them more economical. Google, for instance, just acquired a MicroLED startup to speed up the tech’s development for augmented reality (AR) applications. Yet, even with substantial investments in R&D, it may take years for a technology to reach commercial viability.
Market readiness is another essential factor. Even if a corporation can manufacture a new technology at an affordable cost, it must also assess whether consumers are prepared to embrace it. This is particularly relevant for groundbreaking technologies like foldable phones or AR glasses, which necessitate that consumers alter their interactions with devices. If the market isn’t ready, the product may flop, even if the underlying technology is solid.
## The Prospects for MicroLED and Foldables
So, when can we expect to witness widespread implementation of technologies like
