Vertical Divider
Smartphones
Low Flexible Fab Utilization Leads to Negative Net Margins for the Fold’s Display
July 12, 2020
DSCC’s cost model shows that the Fold’s 6.7” OLED display has a cost of $156, sells for $128 and a net margin of -18%. DSCC points to low utilization and yields to explain the loss. As utilization and yields improve, they expect the cost to drop to $116 in 2021 and continue down to $79 by 2024, with the net margin turning positive in 2021 and reaching 13% in 2024. Last week, we showed a similar cost breakdown for RGBW TVs, but the costs were relatively flat and the percentage of total cost that depreciation occupied was also flat. In the case of these small medium displays, the depreciation share of total cost is more typical, dropping from 15.9% in 2020 to 9.0% in 2024.
Figure 1: 6.7” Foldable Panel Costs in Korea; 2020-2024
Low Flexible Fab Utilization Leads to Negative Net Margins for the Fold’s Display
July 12, 2020
DSCC’s cost model shows that the Fold’s 6.7” OLED display has a cost of $156, sells for $128 and a net margin of -18%. DSCC points to low utilization and yields to explain the loss. As utilization and yields improve, they expect the cost to drop to $116 in 2021 and continue down to $79 by 2024, with the net margin turning positive in 2021 and reaching 13% in 2024. Last week, we showed a similar cost breakdown for RGBW TVs, but the costs were relatively flat and the percentage of total cost that depreciation occupied was also flat. In the case of these small medium displays, the depreciation share of total cost is more typical, dropping from 15.9% in 2020 to 9.0% in 2024.
Figure 1: 6.7” Foldable Panel Costs in Korea; 2020-2024
Figure 2: 2020 Flexible Display Cost by Category
Figure 3: OLED Display Yields by Country ;2017-2024
The low yields by the Chinese OLED panel makers is exemplified by their smartphone panel shipments. Between 2017 and Q120. While Samsung shipped 50-80m panels per quarter, the most any Chinese panel maker could produce was 7,2m by Visionox in Q419.BOE with the most capacity peaked at 6.8m in Q319.
Figure 4: OLED Smartphone Panel Shipments (x/Samsung)
Figure 4: OLED Smartphone Panel Shipments (x/Samsung)
