Reportedly, Chinese panel makers including BOE have come up with their low-price offensive in the smartphone OLED market. The reason is as they invested a lot but demand is not there. While Samsung and LG Display are speculated to focus on LTPO-type OLED.
As per the industry news, it came to light that Chinese panel companies such as BOE, Visionox, Tianma, and CSOT are selling smartphone organic light-emitting diodes (OLEDs) at the above-cost prices. While the average selling price of smartphone OLEDs sold has come to around 20~25 USD.
For the 6-inch flexible OLED product, the median selling price of BOE is approx $20. While Vision Oaks and Tienma are in the low $20 range and the CSOT lies below $20. And because Chinese panel makers are mainly focusing on flexible OLEDs. They mostly tend to respond with flexible OLEDs even for mid to high-end smartphones.
The OLED demand rate of domestic smartphone makers are decreases
Additionally, since the Chinese panel maker is launching low priced in the OLED market. The primary reason is they overinvested in 6th-generation OLEDs. Although its demand continuously seems to decrease, consider BOE as an exceptional one. It is presently supplying smartphone OLEDs to giants like Apple and Samsung Electronics. Alternatively, the rest caters the domestic smartphone companies.
Also, the OLED demand rate of domestic smartphone makers of mostly OLED customers of Chinese panel makers is on the lower side. Thus OLED its shipment to Chinese companies including ‘minus Xiaomi’ also declined last year. As per market research firm Omdia, Xiaomi’s OLED smartphone shipments subsequently increase from 6200 million units in 2021 to 8200 units in 2022. While Oppo and Vivo shipment tends to decrease from 2021 to 2022 respectively.
In such a market trend, both Samsung and LG Display are predicted to focus on the Apple iPhone 15 Pro lineup (LTPO). Meanwhile, it is expected that, when the production yield is high, the profit margin of LTPO OLED is estimated to be 2~20% respectively.
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