IPhone x failed to bring the OLED screen on fire, and Samsung faced pressure to reduce production and price.
OLED screen has always been called the future of intelligence, because it has better display effect and higher energy efficiency than LED screen. Late last year, as apple prepared to release iPhone x with OLED screen for these two seemingly incompatible products, supplier Samsung Electronics hastened to increase production capacity
but now, the market is worried about the possible oversupply of OLED screens and the need to reduce prices. According to people familiar with the matter, Samsung supplied only half of the number of OLED screens to Apple as the iPhone x sales fell short of the expectations of Wall Street and Samsung. The source also said that the operating profit of Samsung's display business this year will be lower than some analysts' expectations
Chinese smart manufacturers may adopt OLED screens and drive demand, but this is unlikely in the short term
"the price reduction will be able to tempt Chinese manufacturers to solve the problem of overcapacity," said Park Kang Ho, an analyst at Daxin securities in South Korea. "The piston and piston sleeve in the OLED oil delivery valve are damaged or the tension spring is softened, and the field will shrink this year, but I don't think the pessimism will last until next year or the following year. Now, Samsung can only continue to carry on."
according to insiders, Samsung is still committed to OLED technology and has not felt the pressure of price reduction. Samsung is pinning part of its OLED business on the galaxy S9 and a future model with a collapsible screen. In addition, apple reportedly plans to release a large screen iPhone with OLED screen later this year
Samsung display company is one of the few suppliers that can produce tens of millions of OLED panels for Samsung Electronics and apple. At the same time, LG display company also began to develop OLED business; It has supplied some screens for Google intelligence and will supply screens for apple in the future
however, many smart manufacturers, especially Chinese manufacturers, have not widely adopted OLED screens
neil campling, an analyst at mirabaud securities, said: "the consensus expectation in the industry was that once the production capacity was sufficient, other manufacturers would try to turn to OLED displays. But Samsung's recent problems showed that other manufacturers such as Xiaomi, oppo, vivo and Huawei were obviously not in a hurry to adopt OLED displays."
the main reason why Chinese manufacturers are not in a hurry to adopt OLED screens is price. According to IHS Markit, the price of the 5.5-inch LCD display used in iPhone 8 plus is $52 per piece, while the price of the 5.8-inch OLED display used in iPhone x is as high as $110
the progress of LCD technology has also delayed some manufacturers' switch to OLED. In addition to iPhone x, almost all other apple devices use LCD screens
"for many users, LCD screen is good enough. In addition, the price gap between OLED and LCD is still large," said Simon Chan, analyst of Bloomberg think tank: pet-fr2300
oled also faces other problems. When Google launched its new pixel smart last year, some users complained about color display errors and screen burning problems. Apple also warned on the official that the typical characteristics of OLED panels to resolve excess capacity should be unswervingly promoted, including screen burning and slight color change
raymond soneira, CEO of displaymate technologies, said, "OLED can survive mainly because of the continuous improvement of Samsung, apple and LG display companies. When I studied OLED a few years ago, its performance can only be ranked last."
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