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Company News >> OLED market prospects prosperous Apple 2.7 billion investment in LG or drastic
Apple introduced the first iPhoneX with OLED screen, triggering consumer concerns about the OLED screen to boost the OLED market. According to a survey released by Yozino Economic Research Institute of Japan's private investigation agency, the overall market size of the global OLED panel (including uses for smartphones, television and smartwatches) in 2017 was up 12.3% to 473.8 million units due to Apple is expected to expand the use of OLED panels in the future, the Chinese manufacturers expected to follow Apple's footsteps, so the global OLED panel market is expected to show rapid growth in 2018, is expected to soar 34.1% to 635.5 million.
Optimistic about OLED panel demand, attracting panel makers such as Sharp, Japan Display Inc (JDI), BOE, CSOT and Tianma Microelectronics to actively invest their equipment. It is estimated that the above manufacturers will invest in 2019-2020 OLED panels will be officially launched during the year. In addition to the demand from smartphones, the demand for television OLED panels is also expected to expand. Therefore, the global OLED panel market is expected to expand to 1,536.6 million by 2022 At a 2.6-fold (+ 264%) increase over 2016 (422 million tablets).
The report pointed out that the single smart phone market with OLED point of view, in 2017 the global smartphone market growth passivation, but thanks to iPhone X blessing, OLED panel market grew 10.8% to 441 million, of which iPhone X with OLED panel number Estimated about 60 million. In 2018 due to the sale of 3 new iPhone machines, it is estimated there will be 2 will carry OLED panels, boosting the 2018 iPhone with the OLED panel market is expected to significantly expand to more than 100 million level.
In order to increase the supply of OLED screen, and to diversify suppliers. Apple invested $ 2.7 billion in LG to help it expand its OLED screen production line so that it could supply OLED screens for the iPhone. In order to become iPhoneOLED screen supplier, LG also invested a lot of money, is expected to have as much as 3.5 billion US dollars.
Kwok Ming-kwan, an analyst at Taiwan's leading securities firm KGI, predicts that in 2019, LG will offer an organic screen of one to 20 percent of Apple's devices. By 2020, the supply ratio will increase to 20-30%.
In the display panel market, LG has a big bet on organic screen technology. But strangely enough, the company's organic-screen TVs are of good quality, but the phone's organic screen exploded in large numbers.
Recently, the foreign media reported that while LG has strong technical strength in TV and other large-scale OLED screens and does not have any problems, it has encountered problems in the POLED screens needed by smartphones. Currently, the POLED screen for smartphones still exists Big quality problem
Kwok Ming-kai, an analyst at KGI Securities, had previously predicted that after 2019, LG will enter the ranks of the iPhone OLED screen suppliers by 2019, which will account for 10% to 20% of the demand for Apple's OLED screens in 2019 and 2020 Year will be increased to 20% to 30%, if you can not quickly solve quality problems, LG may be difficult in 2019 for the iPhone supply OLED screen.
It is understood that the current organic mobile phone screen market in the world, Samsung monitor company has mastered nearly 90% of the market share in a complete monopoly. Samsung also rely on their own monopoly position, from the apple who made a huge profit. Samsung's own mobile phone to buy organic screen, the price of 85 US dollars, but the supply to the Apple iPhone X, quoted at 110 US dollars.
Considering that Apple and Samsung are competitors in consumer electronics and Apple has always had a tradition of diversified supply of parts and components, Apple will try its best to procure OLED screens from other manufacturers when possible.
In the display area, Apple has a large number of suppliers, but unfortunately, in addition to Samsung, other manufacturers currently do not have the mass production technology. Sharp Japan's organic screen in the field of technology accumulation, but because of financial difficulties until it has been difficult to mass production. Another large Japanese supplier of display companies, is also undergoing restructuring, promote the mass production of organic screen.
It is reported that Apple even came into contact with China's BOE in the hope of obtaining organic screen supply, but the two sides did not come forward with further procurement cooperation. According to Taiwanese media reports, organic screen makers in mainland China still have a number of years of discrepancies with Samsung Electronics in mass production technology and quality.

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