What Display Daily thinks: I had to lay it all out in a listicle today, much as I hate them, because the noise level around some of these topics is, how shall I put it, annoying. It’s annoying because there’s a lot of buzz and every time you try to swat it away, you end swiping at the air.
The most telling thing that has happened is the suggestion that iPad Pro sales are going to fall short of expectation, and Samsung and LG will get blamed for not being able to deliver on the technology, or something like that.
Only two display companies benefit from anything Apple does here, LG and Samsung, and while they are busy smoothing the furrowed brow of the grim visaged, weary multi-trillion dollar prince, a young usurper, BOE, is moving up the ranks.
BOE drags along the Chinese display industry, and it is not hampered by any expectation other than gaining market share in OLED. Samsung and LG are hampered by a cutback in investment, and a need to refuel with Apple money. A surging Apple would have made it all so different.
To be fair, Apple is less than surging because the Chinese market isn’t showing it much love. It doesn’t really matter. The thing that makes the most sense of Samsung and LG, supplying Apple, may very well be the thing that buys their Chinese competitors the time they need to tool up for battle.
In the meantime, Apple needs a reorg, a shake-up, something to help it find itself again. Right now it’s like Harrison Ford in an oxygen tent being wheeled out for Indiana Jones 10. And yes, I get it, quarterly results, ROI, capex, yadda yadda yadda. Samsung and LG have no choice but to stay in Apple’s good graces. I doubt Apple will care either way in a few months. It’s got first world problems of enormous consequence. At least to pension funds and money managers on Wall Street.
Here’s the real kicker, Apple whisperer Mark Gurman, over at Bloomberg News, wrote a piece about how Google sees an opportunity to make its Pixel phones a viable alternative to iPhones, now that Apple is struggling, particularly in places like China (where it will struggle with tablets, too). I don’t think anyone should ever hold their breath for Google to stick to any hardware plan for any length of time, but let’s assume it is gearing up to take a run at the smartphone market, who benefits on the display side? It won’t be the Korean display manufacturers.
So, the political tensions between China and the US, and the subsequent embargoes on technology have all led to one thing: China has become a pivotal technology market and given its local companies a very strong foundation from which to launch themselves on to the rest of the world. It is certainly accelerating the Chinese display industry’s market gains in next gen tech. Too late to turn the tide.
BOE’s Clear Road to OLED Dominance
Let’s distill the chatter that has engaged Korean and Chinese analysts for the last week:
Sunic System
- Bid Winner for BOE: Sunic System won the bid to supply the 8th generation OLED evaporator for IT products to BOE. This marks a significant achievement for Sunic System, as it was the sole bidder for this equipment and now has the opportunity to build a crucial track record in supplying evaporators for OLED mass production.
- Development Partnerships: They have been co-developing an evaporator with LG Display, indicating strong partnerships and technological exchange.
- Market Position: Historically, Sunic System has supplied evaporators mainly for research and development rather than mass production. This contract could enhance their reputation and experience in mass production settings.
- Future Opportunities: The selection by BOE might lead to further opportunities with other large firms like LG Display and possibly Samsung Display if they decide to invest in similar technology.
BOE
- Investment in OLED: BOE has announced significant investments in 8th generation OLED technology for IT products, which is more than twice the investment compared to Samsung Display. This indicates BOE’s aggressive strategy to scale up production and minimize the gap with competitors.
- Market Expansion: The investment and upgrade to 8th generation technology suggest BOE is positioning itself as a leading player in the OLED market, particularly for IT products.
LG Display
- Joint Development with Sunic System: LG Display has been working jointly with Sunic System on developing 8th generation OLED evaporators, which could benefit both parties in terms of shared technology and expertise.
- OLED Market Leadership: LG Display is reported to lead in the market share for shipping OLED panels for Apple’s iPads, being the sole producer of the 13-inch model which has a higher shipment forecast compared to the 11-inch model.
Samsung Display
- Investment in OLED Technology: Samsung Display is also investing in 8th generation OLED technology, with a focus on producing IT OLEDs by 2026. Their investment, while substantial, is less than BOE’s, indicating a more conservative approach.
- Production Challenges: Samsung Display is facing technical challenges in developing a two-stack tandem structure for OLEDs, which may affect their production capabilities and market competitiveness.
Meanwhile, Ross Young at DSCC got the Apple fanboys all excited because he posted about the upcoming launch of a new iPad Pro with OLED, and how it will have the best OLED display. Nothing but the best is good enough for Apple and its train of followers.
It is, by now, no secret that Apple is set to release an 11-inch and 13-inch OLED iPad Pro, marking the first application of OLED technology in their iPad line. Apple owns about 40% of the tablet market worldwide and the introduction of OLED iPads is expected to expand the application of OLED technology in the IT product market. LG looks like it may be the big winner, having the better technology, with the suggestion that Samsung has been struggling to deliver on its tandem OLED stacks.
On the other hand, The Elec, which has reporters in every coffee shop outside every Korean display company, or so it would appear, is saying that Apple’s forecasts for iPad Pro sales may fall short of expectations and that Apple is blaming its display suppliers so that it can, essentially, pass the won to Samsung and LG.
