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>> Japanese panel suppliers will not succeed OLED development 2nd,Nov,2017
Many high-end mobile phones currently being launched by major brands have adopted many organic light-emitting diode (OLED) screens, with the exception of Apple. However, this situation will change next year and it is also expected to lift the huge demand for OLEDs. Japanese suppliers are therefore facing tremendous production pressure.
Bloomberg News pointed out that Apple is usually not only to a single supplier orders, is currently negotiating with Sharp procurement. Japan Display (JDI) also plans to start building its own OLED production line. According to Bloomberg reports, the initial costs of the two companies, each at $ 2 billion, have yet to be invested before the order is confirmed. However, they seem to have no alternative.
MUFJ Morgan Stanley analyst Takeo Miyamoto said: "If they do not invest in OLED, is bound to be completely excluded from the smart phone suppliers."
According to IHS Markit reports, Samsung Electronics currently dominate the smart phone OLED market, accounting for 99% of shipments in the first half, the other only 0.4% and glow. However, Samsung Electronics is not only the sole supplier of OLED, but also Apple's rival in the smart phone market, so Apple's OLED smart to use, more necessary to master the new supplier.
Apple has lagged behind competitors in the OLED screen phones, not only the Samsung Galaxy S7 and Google's new Pixel cell phones using OLED screen, and even Motorola, Oppo, HTC and other brands have begun to use OLED.
It is said that Apple is in talks with Samsung Electronics OLED screen purchases, Sharp OLED investment, is also a 200 billion yen Hon Hai commitment to invest in OLED part. Potential business opportunities are huge, with IHS Markit estimating that OLED screen markets will surpass LCDs by 2018 to reach $ 18.6 billion.
For JDI, fight for Apple orders, is the biggest business opportunity, but also the greatest risk. According to Bloomberg analysis, JDI LCD business has 54% revenue by Apple, reportedly approached the bank group for financing, invest in OLED is to survive, have no choice.
Japanese industry is facing the situation: do not invest in OLED, it will be eliminated.
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