Omdia: Samsung's small and medium-sized OLED business faces challenges this year and will rely more on its own mobile phone orders

According to reports from Korean media ZDNet Korea, market analysis agency Omdia pointed out at the recently held 2024 Korea Display Conference (first half of the year) that Samsung Display may encounter some challenges in the small and medium-sized OLED business this year. This is mainly because they are more dependent on rigid OLED panel orders for Samsung Electronics' Galaxy A series phones.

According to Omdia report, the total 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 pieces in 2022 to 324 million pieces.

Samsung has performed poorly in this area, mainly because Chinese companies such as BOE and Tianma have achieved solid growth with affordable flexible OLED panels. The annual growth rates of these Chinese companies have reached double digits, significantly higher than the industry average.

Total annual shipments of flexible OLEDs have increased from 385 million units in 2022 to 508 million units, demonstrating its rapid growth momentum in the market. Compared with OLED products using rigid substrates, the added value of flexible OLEDs is more prominent, which also gives them greater advantages in market competition.

Omdia pointed out that the application proportion of OLED panels in the smartphone market is expected to further increase this year. However, in terms of Apple panel supply, LG Display and BOE will benefit more from order growth, while Samsung Display's shipments in this segment are expected to be roughly the same as last year.

Since it is difficult to expand the sales of rigid OLED in China, Samsung Display will rely more on the orders released by Samsung Electronics’ mid- to low-end Galaxy A series smartphones to switch to OLED to get rid of the current situation. unfavorable situation.

▲ Samsung Galaxy A15 5G equipped with OLED panel. Source Samsung official website

The A15 (5G) launched by Samsung Electronics at the end of last year is the first product in the A1x series of mobile phones to use an OLED panel. Since the global sales of Galaxy A1x series mobile phones can reach 60 million units, this will bring a large number of rigid OLED panel orders to Samsung Electronics, and also increase Samsung Display's dependence on Samsung Electronics.

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