Omdia: Samsung's small and medium-sized OLED business will face challenges in 2024 and will rely more on its own mobile phone orders

IT House News on March 18, referring to the Korean media ZDNet Korea report, market analysis agency Omdia stated at the 2024 Korea Display Conference (first half of the year) held last week that Samsung Display will face difficulties in the small and medium-sized OLED business this year , is more dependent on rigid OLED panel orders for Samsung Electronics' Galaxy A series mobile phones. According to Omdia's report, the overall global smartphone display panel shipments in 2023 will reach 1.45 billion pieces, a year-on-year increase of 5%, of which OLED accounts for 622 million pieces. However, Samsung Display's shipments bucked the trend and fell by 17%, falling from 389 million units in 2022 to 324 million units. Samsung Display has performed poorly in this field because Chinese companies represented by BOE and Tianma have steadily expanded in this market with affordable flexible OLED panels (IT House Note: The annual growth rate has reached double digits, significantly higher than the average ). For context, total annual shipments of flexible OLEDs have jumped from 385 million units in 2022 to 508 million units. At the same time, compared with OLED products using rigid substrates, flexible OLEDs have higher added value. Omdia said the penetration rate of OLED panels in the smartphone market is expected to further increase this year. However, in terms of Apple panels, LG Display and BOE will benefit more from the growth in orders. Samsung Display’s shipments in this segment this year are roughly the same as last year. Since it is difficult to expand the sales of rigid OLEDs in China, Samsung Display will rely more on orders released by Samsung Electronics' mid- to low-end Galaxy A series smartphones to switch to OLEDs to get rid of the current unfavorable situation.

Samsung Electronics introduced OLED panels for the A1x series of mobile phones for the first time on the A15 (5G) released at the end of last year.

Considering that the global sales of the Galaxy A1x series models can reach 60 million units, this will bring a large number of orders for rigid OLED panels to Samsung Electronics, but it will also increase Samsung Display’s dependence on Samsung Electronics.

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