OLED Supply Is Tight, Stimulating Terminal Price Increases, Domestic Panel Makers Are Taking Advantage Of The Trend
- Jan 24, 2019 -

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More and more smart hardware manufacturers are announcing the price increase. Xiaomi TV recently announced on the official micro-selling price of Xiaomi TV 3S. Red rice mobile phone also announced on official micro, the price of red rice 4/4A was raised by 100 yuan, and Meizu, LeTV and other manufacturers also rose some terminals. The price of the product. The industry believes that the tight supply of OLED is an important factor for many manufacturers to upgrade their smart terminal products. It is understood that Samsung has been in the OLED field for a long time, and has always occupied a monopoly position. As the market demand for OLED increases, Samsung's voice in the industry chain is increasing day by day. So, how can domestic manufacturers get rid of their dependence on Samsung?

Smart terminal products have risen in price

Xiaomi TV official Weibo recently announced that the retail price of Xiaomi TV 3s series has been far lower than the production cost. In order to ensure normal supply, Xiaomi TV 3s 48 inches and 55 inches up to 2599 yuan and 3999 yuan (all without shipping). At 0:00 on February 8 this year, channels such as Xiaomi Mall, Tmall, Jingdong Flagship Store and Xiaomi Home began to implement new prices. This is the second time that Xiaomi TV 3s has announced price increases this year. On January 4 this year, 3s48-inch millet TV rose from 1999 yuan to 2,299 yuan, while 55-inch rose from 3,499 yuan to 3,699 yuan.

In fact, Xiaomi is not the only manufacturer to announce the price increase of smart terminal products. On November 21, 2016, LeTV Super TV announced a price increase. Some products were raised by 100 yuan, and some were raised by 300 yuan. Compared with smart TV, the price increase of smart phone products is more obvious. On February 15, 2017, Nubian mobile phone released an announcement to adjust the price of miniS mobile phone. After the adjustment, the original price of 1499 yuan from the Nubian mini S khaki, champagne gold rose to 1599 yuan, and the black gold from 1599 yuan rose to 1699 yuan. Not long ago, the official microblog of Redmi Mobile announced that the price of red rice 4/4A was raised by 100 yuan.

OLED panel supply is tight

The reason for the collective price increase of intelligent hardware products is that the price of components has risen. Among them, the supply of OLEDs in recent times is particularly tight. There are three main reasons for this phenomenon.

First of all, in recent times, the demand for OLEDs in the hardware market has increased significantly. Recently, it has been reported that smartphones and Apple have added 60 million OLED panel supply contracts, plus a total of 160 million OLED panels by the end of 2016. Apple's move will trigger other manufacturers to follow up on the one hand, and make OLED panels more compact on the other hand.

Second, OLEDs replace LCDs and are becoming mainstream. OLEDs are characterized by lightness, power saving, and high performance. OLED has always formed a separate trend with LCD. With the large-screen OLED camp this year, there are more old TV manufacturers such as Sony and Panasonic. The value OLED has made breakthroughs in key technologies, and its advantages in the display field are more and more obvious. The addition of industry will also cause its cost to drop.

Finally, technical difficulties are difficult to overcome and hinder the layout of manufacturers. The OLED panel is a high-tech, high-investment, capital-intensive, technology-intensive, high-growth industry with high barriers to entry. Therefore, even if the market has a large increase in demand for it, there are many advantages. However, due to the small number of manufacturers participating in production and the tight supply, the price of OLED has soared.

Domestic business seeks new way out

From the current situation, due to technical difficulties, there are not many companies that can supply small-screen OLEDs in the world. Samsung is a big one in this field. IHS statistics show that in the third quarter of 2016, Samsung monopolized 101 million pieces of AMOLED panel market with 99.7 million pieces of shipments. Xiaomi 5, Huawei Mate9 Pro, vivo Xplay 5 and other mobile phones use Samsung's OLED panel. In this regard, Samsung's voice in the supply chain is growing with increasing demand.

To make matters worse, this problem will be more serious in 2017. It is reported that Samsung Display Panel's Samsung Display has expanded its cooperation with Apple and added a supply contract for 60 million OLED panels with a contract value of 5 trillion won, or about $4.3 billion. Under this circumstance, domestic manufacturers have begun to exert their strength. Six mainland factories, including BOE, have successively built new OLED panel factories. Huaxing Optoelectronics, Tianma, and Hehui Optoelectronics and Visionox have also announced their re-deployment.

However, the domestic OLED industry is still in the initial stage of development, the industrial chain is not perfect, and it is concentrated in the downstream panel manufacturing process. The upstream equipment and raw materials are relatively weak. Therefore, domestic panel manufacturers have seen business opportunities, but it still takes time to achieve development.