Shenzhen Enrich Electronics Co., Ltd

Favorite  |  Set Home
skype: cassie_1191
QQ: 2850818618
FACEBOOK: Cassie Huang
E-mail: 黄露
Company News >> Analysis: Opportunities for Flexible OLED Smartphone Display 14th,Jan,2020
                                                Currently, the industry generally believes that flexible OLED displays are the best solution for the next-generation smartphone market. New smartphone products equipped with flexible OLED displays are often praised for their outstanding display performance. This display technology is gaining popularity even in markets with slow demand. The emergence of new production capacity, the continuous increase in production, and the introduction of new products have brought new opportunities for flexible OLED displays.

However, the increase in costs, the reduction in yield, the increase in prices, the lack of product differentiation, seasonal demand patterns, and the uncertainty of economic prospects have all brought great challenges to the growth of demand. Focusing on reducing costs, adding new features, implementing differentiated products, new looks, and industry demand for 5G models will all bring more opportunities for flexible OLED displays in 2020.

Flexible OLED-the best solution for next-generation smartphones

Flexible OLED displays provide excellent image quality, with very high contrast, wider color gamut, faster refresh rates and wide viewing angles. In addition, it can realize thin, light, curved, flexible, foldable shapes and design differentiation. In mature, slow-growing markets, smartphone brands are hoping to drive market demand through differentiation.

Samsung ’s Galaxy smartphones and Apple ’s iPhone flagship products make flexible OLED displays into the public eye. The technology is expected to dominate the next-generation smartphone market due to its advantages such as being thinner and lighter, borderless, immersive screens and differentiated shapes. But high costs will limit its adoption in the short term, especially when most of the growth comes from lower-priced mass-market products.

Rigid OLED and LTPS LCD-Solutions for Mass Market Products

Samsung, LGE and China's top brand manufacturers have begun to focus on mass-market products with enhanced features and low prices (less than $ 500) to drive demand in the Asia-Pacific region and emerging markets. In the financial report for the second quarter of 2019, Samsung stated that even if the overall market demand for smartphones declines due to negative macroeconomic conditions and seasonal weakness, Samsung's shipments are also due to the new Galaxy A series (mass market models) Strong sales and achieved sequential growth. However, due to the weak sales momentum of the Galaxy S10 (flagship product) and the stagnant demand for high-quality products, the sales volume of flagship models has achieved a sequential decline.

Due to increasing uncertainties in the global economy and trade, market demand is expected to remain weak in the second half of 2019. Samsung plans to continue to strengthen its flagship product lineup and increase sales of new Volkswagen models. Flagship products are usually equipped with flexible OLED displays, while lower-priced mass-market products from most brand manufacturers are often equipped with rigid OLED and LTPS LCD displays.

Challenges and opportunities for flexible OLEDs

IDC reported on July 31 that global smartphone shipments fell 2.3% year-on-year in the second quarter of 2019, but also the strongest performance since the second quarter of 2018. According to IDC data, as the market began to stabilize again, the second quarter results showed that demand began to pick up. A key driver of demand in the second quarter was the significant improvement in the availability of midrange devices that provide quality design and functionality while also significantly reducing prices.

Xiaomi, Huawei and Apple's market share have all declined, while Xiaomi, OPPO and Vivo have achieved market share growth. Samsung and Apple are top customers for flexible OLED displays. The adoption rate of flexible OLEDs by other Chinese brands depends on the price of competitive panels. But most brands will focus more on lower-priced mass-market products that can be implemented with rigid OLED displays or even LTPS LCDs. Slowing demand for high-end products and higher demand for consumer products in the mid-range mass market will pose significant challenges to the demand for flexible OLED displays in 2019.

IDC's forecast in May 2019 shows that the recovery of the smartphone market in 2019 will continue to face huge challenges. IDC expects the smartphone market to slowly recover from 2020. It is expected that the acceleration of 5G deployment, the popularity of low-cost high-end mobile phones, and the continued growth of markets including India will drive smartphone shipments in the second half of 2019. In addition, price is still a key determinant when buying a new phone, but this trend also provides new opportunities for mid-range models. Users' attention to mid-range price models is a big challenge, but the acceleration of 5G deployment and the introduction of new high-end products will bring new opportunities for flexible OLEDs.

Flexible OLEDs-higher cost, complex production, lower yield

Flexible OLED displays currently face complex manufacturing problems and issues such as yield management, resulting in higher production costs. The mass production of thin film packaging (TFE) technology developed by companies such as Kateeva has eliminated the need for rigid glass for the production of flexible displays. According to Kateeva, the next generation of TFE printing will achieve narrower borders, the largest screen-to-body ratio, and support complex fine pattern printing. The OLED industry is still looking for more efficient and longer-life materials. Research and development of OLED materials and equipment are also ongoing.

Universal Display Corp (UDC) has successfully commercialized phosphorescent OLED materials for many years. PHOLED materials have good power efficiency, which can greatly improve the life and performance of OLEDs. However, due to the low efficiency of blue light emitters, the industry still faces great challenges. OLEDs use red, green and blue emitters. The industry is also developing better blue phosphorescence, of which Kyulux is developing a superfluorescent solution, and Cynora is working on TADF for light emitter technology. As the future can provide thinner, lighter, more reliable, lower power consumption and better performance of flexible display products, the future will be better.

Higher costs, lower output and a long production process have caused a backlog in the market, but due to customized production requirements, fewer suppliers, and higher manufacturing costs, prices have not fallen significantly. As a result, flexible OLEDs meet the requirements of most high-end products, but do not meet consumer demand in the mass market. Samsung Display currently dominates the flexible OLED market, while LGD and BOE are increasing production and supply. In 2020, the production capacity of companies such as Visionox, Huaxing Optoelectronics will also increase. This helps reduce costs and increase adoption.

Flexible OLEDs-integration, innovation and differentiation help drive adoption

In the slow-growing smartphone market, flexible OLEDs are also growing slowly due to high prices. Demand for flexible OLED display products from Samsung and Apple has also begun to decline. In this way, it will lead to a decline in the market's utilization of flexible displays and an increase in the backlog. Major brands such as Samsung and Apple are planning new products to drive demand.

The introduction of 5G products that require thinner displays to fit 5G components will also drive the market's demand for flexible OLEDs. Fingerprint display, embedded touch screen, perforated display, sound on display, haptic display, thin-film flip-chip package (COF) / plastic chip (COP), and other technologies that reduce bezels and increase the screen-to-body ratio, and folding displays The integration of other technologies provides more new opportunities for flexible OLEDs, and promotes the growth in demand and adoption.

Due to its superior image quality, differentiated design, and integration of more new features, flexible OLED displays will become the best solution for the next-generation smartphone market. Factors such as the complexity of the manufacturing process, low output, and high production costs may limit its adoption in the near future, especially the slow market adoption rate in 2019, but the cost reduction and output increase in 2020 will ultimately be Flexible OLED displays bring great opportunities.

Online service

Skype: cassie_1191 2850818618