Vertical Divider
Q320 OLED Smartphone Panel Shipments Down 14% Y/Y to 115m
OLED panel shipments were down 4% Y/Y in 3Q to 164m units, primarily due to a slowdown in OLED smartphone shipments which declined 14% to 115m units, or 70.1% of the total. The other ~30% was made up of OLED TV, OLED smartwatch, and a few ‘other’ applications that include a small number of OLED notebook and monitor panels and some commercial display. OLED TV panel shipments grew ~70% in 3Q as the LGD plant in Guangzhou China ramped OLED TV panel production. While on a unit volume basis, the OLED smartwatch category would have high unit volumes as they are extremely small displays, OLED TV panels made up the bulk of the materials used. This was the first quarter where OLED TV area shipments were greater than smartphone area shipments, making up 53% of OLED panel area in 3Q, according to the data.
As we previously reported, OLED smartphone shipments were lower Y/Y due to delays in shipment dates for the iPhone 12 series. This year the iPhone 12 and 12 Pro were released October 13 and the iPhone 12 Mini, and the iPhone 12 Pro Max were released on November 13. The bulk of the OLED panel shipments will fall into the 4th quarter, which will likely push OLED smartphone area shipments above OLED TV shipments, but at the same time, OLED TV shipments are also expected to grow in 4Q, between 6% and 7.5%. With both major categories increasing in 4Q, OLED smartphones via Apple and OLED TVs via LG OLED area growth is forecast at 25% in 4Q, with only Huawei’s reduced smartphone shipments affecting the downside.
LG Display is targeting 30m unit’s flexible OLED panels for the iPhones in 2021. LGD is expanding their E-6 line by adding the substrates/month but that line will not be ready until 2022. In order to compensate for what would be a shortfall if LGD’s increased goals are accepted by Apple, the company is contemplating using part of its small panel OLED capacity at its E5 fab to supplement potential iPhone production. The E6 was built with Apple’s pre-payment dollars and is dedicated to Apple’s production, the E5 capacity plans would have to be approved by Apple in order to use it for iPhone production. As E5 is currently producing automotive and wearable displays, it needs to be converted to LPTO as a backplane process, which Apple is expected to use in at least two iPhone models next year. While it will still take a few months to do the conversion of at least half of the E5 capacity, it is faster than greenfield construction and takes some of the pressure off of the E6-3 expansion if it approved by Apple. Although it is expected that LGD will bear the cost of the conversion, there is a possibility that Apple could pre-pay for all or a portion of the E5 conversion although that would likely obligate LGD to dedicate that capacity to Apple going forward.
OLED panel shipments were down 4% Y/Y in 3Q to 164m units, primarily due to a slowdown in OLED smartphone shipments which declined 14% to 115m units, or 70.1% of the total. The other ~30% was made up of OLED TV, OLED smartwatch, and a few ‘other’ applications that include a small number of OLED notebook and monitor panels and some commercial display. OLED TV panel shipments grew ~70% in 3Q as the LGD plant in Guangzhou China ramped OLED TV panel production. While on a unit volume basis, the OLED smartwatch category would have high unit volumes as they are extremely small displays, OLED TV panels made up the bulk of the materials used. This was the first quarter where OLED TV area shipments were greater than smartphone area shipments, making up 53% of OLED panel area in 3Q, according to the data.
As we previously reported, OLED smartphone shipments were lower Y/Y due to delays in shipment dates for the iPhone 12 series. This year the iPhone 12 and 12 Pro were released October 13 and the iPhone 12 Mini, and the iPhone 12 Pro Max were released on November 13. The bulk of the OLED panel shipments will fall into the 4th quarter, which will likely push OLED smartphone area shipments above OLED TV shipments, but at the same time, OLED TV shipments are also expected to grow in 4Q, between 6% and 7.5%. With both major categories increasing in 4Q, OLED smartphones via Apple and OLED TVs via LG OLED area growth is forecast at 25% in 4Q, with only Huawei’s reduced smartphone shipments affecting the downside.
LG Display is targeting 30m unit’s flexible OLED panels for the iPhones in 2021. LGD is expanding their E-6 line by adding the substrates/month but that line will not be ready until 2022. In order to compensate for what would be a shortfall if LGD’s increased goals are accepted by Apple, the company is contemplating using part of its small panel OLED capacity at its E5 fab to supplement potential iPhone production. The E6 was built with Apple’s pre-payment dollars and is dedicated to Apple’s production, the E5 capacity plans would have to be approved by Apple in order to use it for iPhone production. As E5 is currently producing automotive and wearable displays, it needs to be converted to LPTO as a backplane process, which Apple is expected to use in at least two iPhone models next year. While it will still take a few months to do the conversion of at least half of the E5 capacity, it is faster than greenfield construction and takes some of the pressure off of the E6-3 expansion if it approved by Apple. Although it is expected that LGD will bear the cost of the conversion, there is a possibility that Apple could pre-pay for all or a portion of the E5 conversion although that would likely obligate LGD to dedicate that capacity to Apple going forward.
|
Contact Us
|
Barry Young
|