According to data released by the analysis agency SA, the global mobile phone display panel market will reach US$46 billion in 2021. In terms of revenue, Samsung, BOE and LGD will rank the top three, occupying 48%, 16%, and 8% of the market respectively. Market share, the three together account for more than 70% of the market share.
In the mobile phone display panel market, Korean panel companies once had a monopoly advantage, but with the rise of China's BOE, the market has become the current pattern of China and South Korea.
BOE mainly focuses on LCD panels, and quickly became the largest in the world by rapidly expanding its production capacity. Another Chinese panel company, Huaxing Optoelectronics, has also grown rapidly. The rise of two Chinese panel companies in the LCD panel market has caused Korean panel companies to suffer. Under huge pressure, because Korean panel companies are more expensive than Chinese panel companies, Samsung finally announced its withdrawal from the LCD panel market, and LGD reduced its LCD panel production capacity.
As China's two major panel companies occupy the world's first and second place in the LCD panel market, they are also targeting the small and medium-sized OLED panel market. In 2017, BOE took the lead in mass production of small and medium-sized OLED panels, and then it copied the production capacity expansion model of LCD panels, and put into production 4 small and medium-sized OLED panel production lines in a few years, second only to Samsung in terms of production capacity.
CSOT's production of small and medium-sized OLED panels is about two years later than that of BOE. After the production of small and medium-sized OLED panels, CSOT is reluctant to take risks to expand the production capacity of small and medium-sized OLED panels, but to open up new paths and invest in more advanced miniLEDs Panel, its parent company TCL sold 100,000 miniLED TVs in 2020, temporarily gaining an advantage in the miniLED panel market, but unfortunately it will be taken the lead by Korean panel companies in 2021.
Since BOE put into production of small and medium-sized OLED panels in 2017, it has been working hard to improve the yield and technical level, and strive to catch up with Samsung in terms of technology to meet Apple's requirements and hope to become Apple's OLED panel supplier.
Becoming an Apple supplier is almost the highest goal of an industry chain company. The previous performance of many industry chain companies has shown that becoming an Apple supplier can earn more profits. After all, Apple’s procurement scale is large enough and Apple’s own profit margin is high. And they are willing to give the industry chain companies more lucrative profits, so the industry chain companies are actively supplying components to Apple.
After nearly four years of hard work, BOE's production capacity and technical level have met Apple's requirements. It has been supplying OLED panels to Apple since the second half of 2021. It is estimated that it has accounted for 20% of Apple's demand for OLED panels. After the order, BOE's net profit in 2021 will be close to the sum of the profits obtained in the previous 10 years.
Before BOE, Samsung and LGD became Apple's OLED panel suppliers, but Samsung has always been the main supplier. Now BOE has a 20% share of Apple's OLED panel demand, and it is estimated that it has surpassed LGD to become Apple's second largest OLED As a panel supplier, it is precisely because of the order given by Apple that BOE has secured the second position in the global smartphone display panel, second only to Samsung.
SA pointed out that there are about 600 million mobile phones in the global smartphone market that will use OLED panels. BOE is expected to further expand its market share by relying on its cost advantage while its technical level is comparable to that of Korean panel companies, which will further challenge Korean panel companies in smartphone display panels. market leadership.
The growth path of BOE in the panel industry has become a model of Chinese manufacturing. After gaining a large enough market share, it will improve its technical level, and then compete with the world's leading companies to gradually enhance its competitiveness. It is encouraging other Chinese manufacturing companies to follow along. Follow this path.
