BOE Vs Samsung, Who Can Help the Upgrade Demand of Smart Phones in the Chinese Market

According to the data recently released by sigmaintell, in 2017, the global shipment of 18:9 screens reached 230 million, of which Samsung shipped 137 million, taking 60% of the global market share and becoming the largest screen supplier. Not only apple, but also domestic mobile phone manufacturers, including Huawei, have to point to Samsung if they want to use OLED screens.On the panels of smart phones and smart TVs, Samsung and LG show strong strength respectively. How do Chinese manufacturers win a favorable position in the market competition? Do any manufacturers have such technical strength and manufacturing strength.1 Smartphone screen battle: OLED screen is in short supply, and miniled will appear in new mobile phones

In the first quarter of 2018, the stock expectation of iPhone X was gradually adjusted from 30-35 million in the early stage to 25 million later, and recently to about 19 million. This is the data at the beginning of January. The probability of continuous adjustment in the first quarter is small. In the second quarter, as a single quarter of traditional product transition, the stock expectation of iPhone x is 13-15 million, which is also expected in the conservative data market.The change of industrial chain stock is transmitted to the supplier level. Samsung, as the largest supplier of Apple OLED, is the first to feel the warmth and coldness.

The investor, a foreign media, reported that Samsung showed that it had slowed down the production speed of OLED panels, or the relatively flat sales performance of iPhone X. Samsung slowed down the operation of A3 plant in January this year, and the operation rate decreased by 10% compared with the same period last year,. At present, A3 factory can produce about 135000 sixth generation OLED panels per month, of which nearly 105000 are supplied to apple, accounting for about 80% of the monthly production capacity. Sources from Taiwan's supply chain manufacturers said that due to Apple's increasing demand for OLED screens, Chinese smartphone manufacturers such as Huawei, oppo and Xiaomi are ready to switch to mini LED screens this year and plan to start producing mini LED backlight modules in June this year. Mini LED screen, as a substitute for OLED screen, will be applied to the new mobile phone products launched in the second half of this year.

2 Breaking the dominance of OLED by Samsung, LG, BOE and sharp have new actionsAs one of the development directions of new display, AMOLED has broad application prospects in smart terminal markets such as high-end smart phones and wearable devices. According to qunxi consulting data, from the perspective of mobile terminal panel development, by 2020, flexible AMOLED will account for 65% of the total AMOLED production capacity. 2017 and 2018 are the two years with the fastest growth rate of flexible AMOLED.On January 3, according to foreign media reports, the OLED screen on Apple's iPhone x is exclusively supplied by Samsung. But this situation will be broken because LG display has begun to build an OLED factory to supply apple. LG display plans to supply OLED panels for Apple's next-generation iPhone this year, the report said. LG will provide apple with more than 15 million OLED panels, which will be used on the new generation iPhone and is expected to be released in the second half of this year.

Domestic manufacturers have successively sent messages on OLED panels. On the evening of January 16, sharp president and CEO Dai Zhengwu said today that sharp will mass produce OLED panels as soon as the first quarter of this year, thus breaking the current situation dominated by Samsung Electronics. In addition, sharp will launch a smartphone equipped with its own OLED panel in June or July this year.On May 11, 2017, BOE (BOE) Chengdu 6th generation flexible AMOLED production line, the first 6th generation flexible AMOLED production line in China, was officially put into production. The design capacity is 48000 glass substrates per month (the size of glass substrate is 1850mm) 1500mm), located in high-end mobile display and emerging mobile display products.BOE Chengdu OELD production line has started mass production and delivered the first batch of products to Huawei, oppo, vivo, Xiaomi, ZTE, Nubia and other customers. The company lights up from the production line. At present, the yield climbs faster than expected.

At CES, BOE's booth displayed 8K display screen with a resolution of 7680x4320. In addition to the display screen of the booth, there is also the eye-catching central console of the intelligent electric vehicle byton. So far, the largest display screen in the vehicle, a 50 inch screen, is set on the driving platform. This vehicle curved screen can realize 3840 720 resolution, brightness up to 1000nit. The display also supports advanced gesture interaction function, sliding left and right to find contacts.The company's card position advantage in the OLED field is far better than that in the LCD era. Flexible OLEDs will be in short supply in the next 2-3 years.3 In the large-scale smart TV market, the competition between Korean manufacturers and Chinese manufacturers continues

According to the latest report of IHS, the tight panel supply from 2016 to the first quarter of 2017 caused the panel price to soar. The panel supply reversed excess in the third quarter of 2017, and the panel price began to decline rapidly. The decline rate of TV panel in the fourth quarter was slower than that in the third quarter, but some panel manufacturers strategically reduced the price by car (for 40, 50 and 65 inches), Plan price reduction strategy to lock in demand and increase shipments.

As we all know, the global TV market has entered a mature stage. The demand for substitution and upgrading has long replaced the new purchase as the main form of TV demand. The main feature of substitution demand is the continuous upgrading of technology, including display technology and sound effect technology. The IHS report also pointed out that in November 2017, the global monthly shipment of OLED TV reached a record 270000 units, with a year-on-year increase of 133%, mainly due to the significant increase in sales volume due to the decline of the retail price of 55 inch 4K TV to the budget range of a considerable number of high-end users. LG plays a leading role in OLED TV. In 2016, LG's market share in OLED TV shipments was as high as 92%. The rest is the sales of major Chinese brands limited to China's local market. In 2017, LG continued to take the lead. In November, LG's OLED TV shipments increased by 31% over the previous month, and 55 inch and 65 inch OLEDs increased by 123% and 157% over the same period in 2016.

Iris Hu, research manager of WitsView, pointed out that by 2018, panel manufacturers will continue to increase the production share of large-size panels and UHD panels to improve revenue and profits. "The penetration rate of ultra UHD panels this year is expected to reach 42%, an increase of 7.4% over 2017. In terms of new production capacity, BOE's 10th.5 generation wafer plant mainly produces large-size TV panels (65 inches and 75 inches), but China's CEC's two wafer plants still focus on medium-sized panels (32 inches and 50 inches).In general, this year's global TV panel shipments will have the opportunity to reach the second highest in history, reaching 26949 million pieces, with a year-on-year increase of 2.2%. LG occupies the first place, and BOE has successfully rushed to the second position. In the next three years, with the continuous release of BOE's production capacity, it is possible to change the pattern of the market.