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Company News >> It is still unknown whether Samsung can restart flexible OLED production line in May. 18th,Apr,2018

Recently, the industry chain reported that Apple and Samsung have reached an agreement this year on the supply of flexible OLED panels this year. The removal of previous generation iPhoneX models will continue to produce flexible OLED panels, with about 100 million installed capacity. In addition to the production capacity, Apple will purchase about 100 million flexible OLED panels for this year's new model, including an upgraded version of the iPhone X 2, and an iPhone X Plus equipped with a 6.5-inch flexible OLED panel.

Related industry information shows that Samsung will restart its flexible OLED panel production capacity for Apple in May at the earliest. The initial ramp-up rate of production capacity is similar to that of last year. It is only one month ahead of the start date. It is estimated that by the end of this year, Samsung will have a total It can produce about 15-20 million more apples than last year, and can provide about 70 million flexible OLED panels to Apple's new models throughout the year.

According to industry estimates, Samsung has now converted the production capacity of flexible OLED panels to 28 million per month, of which Samsung's own mobile phones can probably absorb about 6 million. Originally, Samsung prepared 20 million pieces of products each month, and then set aside 2 million pieces for Chinese mobile phone brand manufacturers. If Chinese mobile phone brand manufacturers quickly follow up on flexible OLED technology, Samsung will gradually convert other hard OLED panel production capacity into flexible OLED panel production capacity.

Since Samsung completed orders for most of the pre-iPhone X flexible OLED panels in March, Samsung suspended part of its production lines for Apple's production capacity, which has led to doubts about the future market application of flexible OLEDs. At the same time, LG also terminated its flexible OLED expansion plan at the end of last year, and frozen its intention to purchase equipment in the supplier's contract, which also undermined the market's confidence in the promotion of flexible OLED technology.

Originally, Samsung hoped that Apple could drive China's domestic mobile phones to quickly follow up on flexible OLED technology. However, due to the high cost and the fact that Apple did not press all of its products on OLED technology, China’s domestic mobile phone brands were also slowed down. The demand for Samsung OLED panels.

Of course, this round of market volatility is not without a profitable party. Prior to this, Xiaomi repeatedly negotiated with Samsung about OLED panel supply, and did not get Samsung's production capacity. However, since the beginning of this year, Samsung has officially started to cooperate with Xiaomi in an all-round way to provide OLED panel for Xiaomi's flagship model.

In addition, after LG terminated the flexible OLED panel expansion plan, its excess equipment production capacity was immediately booked by China BOE. BOE quickly reached a purchasing agreement with the parties and announced that it would duplicate a third 6-generation flexible OLED panel with the Chongqing municipal government. Production line.

However, despite this year's Samsung's flexible OLED panel production capacity, it did not continue to expand production as expected, but it does not mean that Samsung has lost control of the flexible OLED panel market. Although there will be three to four OLED evaporation machines in China this year, such as the official production, which means that more or less part of the flexible OLED panel supply market in China this year, but due to the process of running time and operating experience accumulation and other reasons, the external forecast China's real capacity to supply branded mobile phone manufacturers is very limited.

In fact, even with the next year and the next year together, China will add three or four OLED evaporation machines each year to production. By 2020, China will be able to provide enough flexible OLED production capacity that is normally available, and it will not be able to create substantial results for Samsung. Threatened.

In addition, Samsung took orders from Apple's OLED panel last year, but these orders did not increase Samsung’s panel profitability, in addition to increasing Samsung’s revenue. When Apple negotiated OLED procurement with Samsung this year, it clearly stated that a price reduction of more than one percent would make Samsung feel the profitability pressure of flexible OLED products.

Apple's price pressure on flexible OLEDs may also be as low as LTPS's profitability at the time. Apple has also made many companies investing in flexible OLEDs unprofitable. Even Samsung, which has accumulated for many years on OLEDs, will be the same as JDI with the most precipitation of LTPS technology that year, and it will be difficult to escape the fate of earning money without revenue.