Feb 22, 2017
Samsung Electronics' Galaxy S7 Edge equipped with a flexible OLED display from Samsung Display. / Samsung Display
Display is moving to lead the next-generation mobile display industry with its organic light-emitting-diode (OLED) panels for smartphones.
The move comes as part of the display panel manufacturer's ongoing paradigm shift into the emerging and highly-lucrative small OLED display industry. This also reflects the firm's aggressive bid to stay ahead of emerging Chinese rivals which have in recent years made massive investments to steal the limelight from the Korean display giant leading the global market.
To tackle the ever-growing competitive landscape, the nation's top-tier display panel manufacturer said Tuesday that it would remain more agile in finding its next growth engines by launching a series of highly value-added products for which the firm identified the small OLED panels as its key cash cow.
“OLED displays are regarded as the most optimized option for mobile devices, thanks to its excellent color reproduction and energy-efficient power consumption,” the company said in a statement.
On top of that, OLED offers endless design options for smartphone manufacturers, as it can be flexible and even foldable. This is not the case for the bulk of existing smart devices equipped with LCDs.
For these futuristic features, the display industry identifies flexible OLED as the next design standard for smartphones.
Shipments for flexible OLED panels will top 146 million this year, with the number estimated to exceed 3.96 billion in 2020, according to market researcher IHS Markit. The flexible OLED market will be worth some $9.26 billion (10.6 trillion won) this year, with its value skyrocketing to $20.68 billion in 2020, it added.
In the small- to medium-sized OLED market, Samsung Display is the dominant leader with a market share of some 97%, backed by its decade-long technological expertise. To maintain its leading position, the firm is making massive investments to develop not just flexible, but foldable and rolling displays, in what the company says is a move to remain agile to tap into the next emerging display areas such as healthcare or fashion.
Despite its leadership in the industry, the company is also seeking to secure diverse and stable revenue streams by leading a premium TV industry.
“We are going to diversify lineups for large UHD TVs, in our bid to strengthen value-added product lineups and improve profitability,” the company said.
According to IHS, UHD TV shipments this year are forecast to grow more than 40%, compared to a year ago. The sales volume will also reach some $57 billion in the same period, taking up more than a 60 percent share of the total TV market.
Toward that end, the firm said it would continue to develop and combine differentiated features ― such as frameless or curved displays ― for UHD TVs.
Aside from the existing cash cows, Samsung Display also aims to widen its R&D footsteps into other emerging revenue areas ― such as displays for vehicles, education or commercial purposes, according to the company.
Source:The Korea Times