After the emergence of BOE as the third Apple (Apple) iPhone's flexible OLED panel supplier, it means that China's OLED technology is making progress, and Apple is also willing to make the iPhone's panel supply become a multiple supplier. If BOE passes Apple's quality certification, it will become a strong enemy of Korean panel companies.
According to the Korean media ET News, Samsung Display has a market share of 95% in the global flexible OLED market. It is the only company that can mass produce high-quality panels, although many competitors also invest in the development of flexible OLEDs. At this stage, technology and production capacity are still not comparable to Samsung monitors, which is one of the reasons why Apple is actively seeking multiple suppliers.
LG Display (LGD) is the second company to qualify for the iPhone's flexible OLED panel supplier. Although the product has passed Apple certification, production is still not stable and still faces many problems. LGD produces the iPhone's flexible OLED panel with the E6 line, and improving yield is the top priority in 2019. If the rate of success cannot be improved in 2019, LGD will face high depreciation costs, operating losses, and a downturn in revenue.
It is understood that Apple continues to require Samsung monitors to lower the price of the panel, but because Samsung monitors are exclusive supply, so the bargaining space is very limited, BOE's participation will facilitate Apple and Samsung monitors to negotiate. And BOE, under the support of Apple, has the opportunity to quickly narrow the gap with Samsung monitors.
People familiar with the matter said that most suppliers who trade with Apple only earned meager profits, so if BOE really joins the battle, Samsung Display and LGD will definitely be hit. The first to accept the challenge will be LGD, LGD must first compete with BOE for the second place.
Together with the B15 production line construction plan recently announced by BOE in December 2018, BOE has four 6-generation flexible OLED production lines, with a total monthly production capacity of 192,000 in 2023. The monthly production capacity of LGD 6-generation flexible OLED is about 45,000 pieces. The production capacity is not as good as that of BOE. However, the 4th generation production line E2 (monthly production capacity of about 23,000 pieces) is also mass-produced for OLED panels, and the production rate of E5 production line has recently increased. Up to 90%, the actual production has increased significantly.
The Korean industry said that from the development time and mass production experience of OLED, LGD is obviously superior to BOE, but BOE has a new display technology talent, so it can catch up quickly. Coupled with its capital strength, BOE may face fierce competition in the future.
