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Company News >> Panel makers fear to invest in OLED prospects 4th,Apr,2018
                                          OLED expands industry time, LCD industry is in fear of worse
The rumors that Apple's iPhone 8 will adopt OLEDs next year are all over the place. However, panel makers that are currently capable of supplying small sized OLEDs are almost exclusively Samsung Electronics (SAMSUNG), meaning that Samsung may initially monopolize the iPhone 8 panel order. Although LG Display, JDI (Japan Display), Sharp and other panel makers have spent billions of dollars to promote OLED production time, most OLED production capacity is expected to go online at least until 2018. These investments can No real recovery is still unpredictable. The higher the expectations, the greater the disappointment may be. The report pointed out that in the next year is expected to be difficult to ensure adequate supply of OLEDs, these panel makers currently eager to invest in OLED, I am afraid still have to rely on the old industry LCD (Liquid Crystal Display, liquid crystal display). The strong demand for mobile phone plants in China has driven LCD prices to rise this year, but increasing LCD supply next year—especially from China—may cause LCD prices to fall again.

Once OLEDs flooded into the market, they would lose their prices.
If the industry's LCD market deteriorates, the plan to invest in OLEDs will not be able to stop. It is expected that the financial performance of these panel makers will be under tremendous pressure. Goldman Sachs anticipates that LG Display will turn negative this year and the next two years of free cash flow. And while OLEDs are so costly to deploy, the investment vision may never be realized. Because once OLED production capacity of various panel makers goes online, the supply of OLEDs in the market will increase rapidly, and the prices will naturally drop, weakening the profits that LG Display and other backward vendors can earn. In addition, the popularity of OLEDs, which were born to replace LCDs, will further lower LCD prices. Thanks to the increase in LCD prices and other bullish news, LG Display's share price has risen nearly 45% since its February low. According to data from S&P Global Market Intelligence, the rebound in stock prices has boosted LG Display's corporate value to 4.2 times that of EBITDA (pre-tax pre-tax depreciation and amortization), which is much higher than the 5-year average of 2.9 times. This means that LG Display could easily be affected if there is a turmoil in the industry.

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