Recent reports from IFA Berlin this week continue to sing the praises of all things OLED as the super thin emissive display technology looks to be finally coming into its own. And why not? In July Digitimes reported virtual price parity between AMLCD and OLED production costs in the popular mobile panels with HD resolution.
But don’t give up the ship just yet on LCD’s as a recent IHS Markit report on LCD production shows output from LCD fabs stabilizing in the coming quarters at a plus 91% utilization rate.
According to Digitimes, the Taiwan based display market research report stated “The production cost for a 5.5-inch HD AMOLED panel has drifted to $12.10 recently, compared to $12.20 for a 5.5-inch HP LTPS LCD panel” (Digitimes is subscription based and the story has since gone away, but we found several references on line like this link to Notebookcheck.net).
LCD panel makers quarterly fab utilization rate, Source: IHSHelp with the price drop comes from the rumored Apple Gen 10 iPhone (8?) that is due to be announced in just a couple of weeks. Word on the street from reliable suppliers is that (at least some) next gen smartphones from the Cupertino behemoth are to ship with the coveted OLED display. Prices between the two different display technologies (at least in popular mobile size of 5.5-inch) are now separated by just $0.10 per panel. Digitimes reckons that by 2020 (yikes just 2 ½ years out) up to 50% of smartphones will sport the newer AMOLED displays.
Large area LCD panel inventory weeks, Source: IHSIn the meantime, LCD production keeps churning on. The most recent Markit Report from IHS shows LCD fab utilization rates have stabilized for the fifth consecutive quarter. In Q3-17 “…overall fab utilization rate is expected to reach 91% in the third quarter, up 1.8 percentage points from the previous quarter and up 1.1 percentage points from the same period last year,” the August 28th 2017 report stated.
For OLED mobile still dominate as the high growth display categoryCurrently large display panels (for TVs etc.) dominate the LCD fab scene, and that utilization is only getting higher with display production in terms of area growing 2.2% more than actual shipments in Q3 according to IHS. We are gearing up for the holiday shopping season, and the market research firm reckons panel makers like the “wiggle room” this option affords.
Truth be told, OLED sales are still a rounding error by comparison to those of LCDs, but the upstart emissive, ultra thin display technology seems to be upstart no longer, It has solidified its future in the display space, starting with mobile, and in no small part due to the efforts and investment of Samsung. But will OLED ever completely replace LCD as the display technology of choice, in most all markets the way LCD’s displaced CRTs? Ummm, No! – Let’s say both technologies are hear to stay, that is until they are blindsided by the next display disrupter… Stephen Sechrist
Sony Looking to Double OLED Supply
OLED Panel Shipments Continued to Rise in Q2
Panel Makers Forecast to Maintain High Fab Utilization Rates in Q3, IHS Markit Says
