Samsung Display - Page 56

Samsung's OLED fabs are currently under utilized - with some analysts estimating that its flexible OLED fabs are running at about 50% capacity following lower-than-expected orders from Apple. SDC also decided to delay its upcoming A5 production fab.

Samsung OLED TVs (2013)

This is a lot of wasted capacity. Last month I speculated that SDC may target new applications for its OLEDs - including monitors and laptops - or perhaps transparent OLEDs as well. According to a new report from Korea, SDC may be aiming to start constructing an A5 line - but use it to produce large-area OLED TV panels. According to a financial analyst, Samsung recently assembled a new OLED TV team with 300 R&D employees.

Earlier this month DSCC announced that it sees low AMOLED fab utilization at SDC, following lower than expected Apple orders. The weaker-than-expected 2018 will move OLED makers to delay and cancel new OLED fab expansion plans.

DSCC now released its updated forecast numbers. The company lowered its outlook for 2018 by 22% and expects total OLED revenues to be $30.3 billion (up 30% from 2017). Looking further ahead to 2022, DSCC sees the market growing at a CAGR of 23% (down from its earlier estimates of 27%). In 2022 the total OLED market will reach $64.3 billion in revenues (down from its earlier estimates of $79.6 billion).

Apple's iPhone X sales were lower than expected, which resulted in a reduction of OLED display orders from SDC (from an estimated 40 million in Q1 2018 to 20 million). Several reports also suggested that Apple may decide to only introduce one new OLED iPhone model in 2018 (the larger 6.5" one, with panels made by LGD).

One of these reports came from Taiwan's Digitimes, but a new report from Digitimes suggests that Apple does plan to upgrade its OLED iPhone X in 2018. According to Digitimes, Apple will introduce a slightly larger 5.9" OLED model. In total Apple will buy 110-130 OLED panels in 2018, for all three OLED models (the 2017 iPhone X, the 2018 5.9" iPhone XI and the larger 6.5" OLED iPhone XI plus).

Yesterday reports from Korea suggested that pre-orders for the Galaxy S9 in Korea are 30% lower compared to the pre-orders of the Galaxy S8 in 2017. The Korea Herald, however, today says that Samsung believes it will sell more Galaxy S9 phones than it did with the GS8.

The Korea Herald says that Samsung told its suppliers that its target is to sell 43 million GS9 (and GS9 plus) phones in 2018. In 2017, Samsung shipped 41 million GS8 and GS8 plus phones. In 2016, Samsung shipped 48 million GS7 phones, so even if it reaches its target of 43 million GS9 phones, it will still lag behind The GS7.

According to reports from Korea, pre-orders for the Galaxy S9 in Korea are 30% lower compared to the pre-orders of Samsung's Galaxy S8 in 2017. Yonhap news says that Korea's three largest carriers distributed only 180,000 GS9 phones, while at the same time last year these three companies distributed 260,00 GS8 phones.

Samsung did not yet disclose any pre-sales data. The GS9 has a flexible 5.8" 1440x2960 (570 PPI) Super AMOLED display (6.2", 529 PPI, on the S9 Plus). DisplayMate says that this display is the best mobile display ever tested, surprassing in quality the 5.8" flexible AMOLED used in the iPhone X.

Market analysts from DSCC say that the low utilization rates at Samsung Display has caused the company to delay its capacity expansion plans. SDC's decision to delay its A5 fab has already been discussed, but DSCC now says that Samsung is also significantly delaying the ramp-up at its new A4 line. DSCC estimates that SDC will delay this new line by at least a year.

LG Display has also reportedly cancelled the first phase of their next flexible OLED line, the P7 (which can be a conversion of LGD's old P7 LCD line). DSCC sees LGD ordering equipment for a new flexible OLED line only at the beginning of 2019.

A few months ago Audi launched its 2018 A8 high-end car, with its OLED lighting rear lights (designed and produced by Hella). Now Audi informs us that the new car also include a rear-seat remote with a 5.7" FHD AMOLED display (produced by SDC).

This is actually the world's first automotive AMOLED displays. We've seen many automobiles with PMOLED displays (in instrument clusters and other controls) but this is the first adoption of an AMOLED display. Depending on the rear equipment specification, the control unit is supplied as standard or an option.

Samsung introduced its Galaxy S9 flagship phone a couple of days ago, with its flexible 5.8" 1440x2960 (570 PPI) Super AMOLED display (6.2", 529 PPI, on the S9 Plus).

Display measurement experts from DisplayMate already tested the new display (with a pre-production GS9), and published a comprehensive report. As expected, Samsung continues to improve its OLED displays, and the GS9 again is announced by DisplayMate to be the world's best ever mobile display, better than the iPhone X OLED.

In early 2018 Samsung unveiled its 146" modular Wall Micro-LED TV, and LG Display was quick to announce that it is also developing similar technology. According to reports, LGD aims to unveil its first Micro-LED TV in September 2018 (at IFA perhaps?) - and it will be larger than Samsung's.

Samsung 146-inch Wall Micro-LED TV

Samsung's focus for the premium TV market is on two technologies, Quantum Dots and Micro-LEDs. It is not likely that LG Display is shifting its focus from OLEDs to Micro-LEDs, but it may be that Micro-LEDs will be used for very large area TVs and maybe for modular designs signage displays.

Last week we reported that ETNews claims that Samsung is developing a hybrid Quantum-Dots OLED technology for its future TVs.

Today Yonhap News reports that Samsung Visual Display Business VP, Han Jong-hee, denies this story, saying that Samsung sticks to its two-track strategy for the high-end TV market, developing both QLED (quantum-dots enhanced LED LCDs) and Micro-LED TVs. Han further says that Samsung will start selling its Wall Micro-LED TV in August 2018.