What Display Daily thinks: Despite strong off-season performance in the first half of 2024, some panel technologies may face weaker demand later in the year. Samsung will probably continue to maintain its strong position in the OLED market, but only because it is being very aggressive on managing its innovation despite intense pricing and competitive pressure.
The recent news in The Elec about Samsung looking to cut power consumption in its OLED smartphone displays augurs well for the company, but the surge among Chinese companies is going to go unabated.
in a keynote at the IMID opening, Samsung disclosed that it is developing technology to eliminate or replace factors impacting power usage with a world-first panel technology that cuts power consumption by over 30% eliminating the standard polarizing film. The company also introduced low-power OLED advancements like multi frequency driving (MFD) and a tandem structure that doubles luminous efficiency. By adjusting the frequency at which certain parts of the screen are refreshed, MFD can lower power consumption, particularly in scenarios where high refresh rates are unnecessary
The general consensus around the smartphone market is that AI is creating or will create continued demand for new phones and Samsung believes that AI creates new opportunities for display innovation. But the company also has a strong handle on gaming performance, foldables and rollables.
Nevertheless, the question remains. are consumers as enamored by AI as a driver fo purchases as the industry seems to be? Do consumers have a perspective on display performance being an issue in AI? Does it matter if the industry is riding the wave anyhow?
What is clear is that Samsung is going to stand alone as the only non-Chinese panel marker against the rising tide of competition from the mainland. It is also clear that the Chinese manufacturers have distinct advantages arising from the strength of their local smartphone market and opportunities in developing regions.
Pricing and production data from the second half of the year should show entrenchment by Samsung, and more encroachment on market share by Chinese vendors, but the question is how much innovation can Samsung deliver, and at what price, to stem the tides of competition?
There’s an aggressiveness in the Chinese panel makers that suggests they will make the price adjustments necessary to continue their momentum, and there is a flexibility in managing production and inventories that exists because of their reach into their massive local market, and emerging markets as well, that is hard for any foreign suppliers to match.
This may turn out to be the best news the supply chain for all the panel makers could hope for because it opens up the market to more companies as the major panel makers look at every opportunity to differentiate themselves. Even if the second half of 2024 is uncertain and smartphone shipment growth slows or stagnates, the display industry is looking at a period of intense activity.
Global Smartphone Panel Shipments in H1 2024
In the first half of 2024, global smartphone panel shipments reached approximately 1.07 billion units, a YoY growth of about 11.3%, according toChina’s Sigmaintell. 530 million units shipped in the second quarter alone.
The market exhibited a clear divergence in panel shipments across different technologies. a-Si LCD panels, for instance, saw shipments exceed expectations, with around 560 million units shipped, representing a 5% increase compared to the previous year. This growth was largely driven by strong demand in emerging markets and heightened competition in the low-end 5G market. In contrast, LTPS LCD panels experienced a decline, with shipments falling by about 28% YoY to 110 million units, as demand for this technology continued to contract.
Rigid OLED panels saw a significant recovery in demand, with shipments rising by approximately 91% to 120 million units. Flexible OLED panels also performed well, driven by competitiveness in mid-to-high-end products, resulting in shipments of around 280 million units, a 31% YoY increase.
The market saw BOE and Samsung Display maintain their leading positions, although the advantage of these top-tier manufacturers began to diminish amid intensifying competition. BOE shipped approximately 260 million units in the first half of the year, though this marked a slight 1% decline compared to the previous year. Samsung Display followed closely with 180 million units shipped, supported by strong performance in rigid OLED panels. Among Chinese manufacturers, BOE continued to lead in flexible OLED shipments within the domestic market, a 27% YoY increase. HKC ranked third globally with nearly 110 million units shipped, while TCL CSOT and Tianma also achieved significant OLED panel shipments.
Global OLED panel shipments totaled 400 million units in the first half of 2024, marking a 44% increase compared to the previous year. Flexible OLED panels accounted for 280 million units. Despite facing competition from domestic Chinese manufacturers and a decrease in demand from local terminal brands, Samsung Display retained its position as the largest global supplier, with a 45.4% market share.
Chinese manufacturers saw significant gains, with total OLED shipments from China increasing by 70% YoY to 200 million units. BOE led this growth with a 16% global market share, followed by Visionox and TCL CSOT.
