What Display Daily thinks: EDO has take some big hits financially, and is pushing back investments in equipment and developments in next generation OLED manufacturing while wanting to broaden its product base so that it is not solely reliant on the smartphone market. That’s a lot.
Obviously, the Chinese company’s timely access to new tech has suffered from both US sanctions on the tech sector, and the fact that it has to stand in line behind its bigger local competitors. Despite EDO being China’s first OLED manufacturer, its local competitors aggressive push to position themselves for OLED panel sales against Korea’s giants echoes some of the dynamics of the LCD market where they were able to carve out increasing market share for their offerings.
Samsung is still the prime supplier of OLED displays in the smartphone sector. So, it will probably see that market position erode over the next 3 years, even if the present geopolitical environment remains adverse for its Chinese competitors. The capacity of China’s display manufacturers for losses and investment is a match for the Korean display industry’s present dominance and commitment to OLED market dominance. Whie it would be hard to see EDO’s results here as anything but disastrous in any other circumstance, it is probably just the cost of China’s display industry positioning in the OLED market.
No pain, no gain? Then how much gain can the display industry expect for Chinese display manufacturers suffering this much pain? One thing is for sure, Apple will play a major role in shaping the future market position of Chinese vendors in the smartphone market because it will not want Samsung to remain as dominant as it appears to be. Whether that benefit trickles down to EDO from the likes of BOE is debatable.
Everdisplay (EDO) Suffers Continuous Losses and Diminished Earnings
Everdisplay (EDO), the China-based AMOLED manufacturer is facing challenges due to global economic conditions, industry competition, and financial factors. To address these challenges, the company is focusing on R&D to develop innovative technologies while also diversifying its product offerings and expanding production capacity.
EDO’s income for the first half of 2023 was 1.373 billion yuan ($192 million USD). This is a 23.4% decrease compared to the income during the first half of 2022. The company reported a loss of 1.296 billion yuan ($181 million) for the first half of 2023. This represents a significant increase of 173% compared to the loss in the same period in 2022.
| (Yuan in millions) | Q2’23 | USD (in millions) | Q1’23 | USD (in millions) |
| Revenue | 526.51 | $73.71 | 846.85 | $118.56 |
| Net income | -870.27 | -$121.84 | -425.79 | -$59.61 |
| Net profit margin | -165.29% | -50.28% | ||
| Operating income | -522.4 | -$73.14 | -276.62 | -$38.73 |
| Net change in cash | -61.51 | -$8.61 | 149.78 | $20.97 |
| Cost of revenue | 972.68 | $136.18 | 1,030 | $144.20 |
