‘Samsung monopoly of OLED market, China to start to follow up
Park Seul Gee | seul@ | 2017-03-17 10:15:52

China BOE is expected to supply organic light emitting diode (OLED) TV to Apple``s ‘iPhone 9 (tentative name)’ through earnest mass production of small and medium sized organic light emitting diode (OLED) for mobile from next year. It is pointed out that there is going to be competition between China and Korea as Samsung Display has been leading the small and medium sized OLED TV market.

According to international press and electronics industries on March 16, China``s display manufacturer BOE is expected to supply OLED displays to Apple``s iPhone 9, which is planned to be launched in the second half of next year. The BOE and Apple plan to final confirm supply volume and period soon. BOE currently produces 5-inch and 5.2-inch OLED displays.

The industry expects Apple to diversify its OLED supply sources from next year as it has received parts from several sources so far. Apple has received OLED display for the first time this year. And it has been reported that it receives the display only from Samsung display. However it turned out that it is difficult to maintain this partnership in the long term.

Samsung Display leads and accounts for 96% of the market in the small- and mid-sized OLED market. LG Display accounts for 2% and Ever Display accounts for 1% of OLED market. Samsung Electronics is planned to supply OLED exclusively to ``iPhone 8`` in September. Apple is expected to include OLED displays in 5.8-inch screens. Samsung Display is expected to supply about 60 million OLEDs for iPhone 8 to Apple.

The pursuit of followers has already begun in response to this situation. LG Display, which has been producing TV-oriented OLEDs, will produce 6G OLEDs in Gumi E5 in the second half of this year, securing production capacity of 15,000 units per month by the end of the year. LG aims to supply OLED to Chinese smartphone manufacturers including Apple, which supplied LCDs.

Chinese companies are also ready to attack. The BOE has invested CNY 100 billion (about KRW 16.5 trillion ) to build an OLED production plant in Chengdu and Mianyang in Sichuan Province, China. Sharp Co., Ltd, which has been acquired by Taiwan’s HongHai, plans to produce about 30,000 small OLEDs monthly by investing USD 878 million (about KRW 1 trillion) in OLED production facilities by June next year.

The surge in demand for OLEDs is considered to be the background of investments by Chinese and Korean companies. According to market researcher IHS Markit, the global OLED market is expected to grow from USD 19.2357 billion this year to USD 30.5 billion in 2023. According to UBI Research, Samsung Display``s market share will drop from 89% to 72% in the same period,.

A representative of a display industry said, ‘It is positive that Korean and Chinese companies enter the small and medium-sized OLED market as the pie of the market grows, but it is necessary to secure additional technology different from Chinese companies to lead the market’.

By Park Seul Gee seul@

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