Musing From an OLED Advocate

Musing Commentary on August 14, 2022
LGD’s Dilemma – LCD Panels Unprofitable & Getting Worse, But OLEDs Can’t Carry the Revenue Burden
 
Jeong Ho-young got his dream job in December 2019, when he became CEO of LG Display. His role would be to speed up the transition from LCDs to OLEDs, which his predecessor had started.  LGD had opted to concentrate on OLED TV panels and then dabble in smartphones, while competitor Samsung Display did the opposite. His job became more difficult when the Gen 8.5 fab in Guangzhou took until Q321 to reach full capacity, a one year delay. But he got a break when the pandemic hit and raised demand for TV and IT panels, faster than the Chinese large area capacity growth. Starting in early 2020, panel prices and demand more than doubled through Q421. LGD’s plan to keep much of its old LCD capacity going until OLEDs could carry the burden of the large capex needed the fund the change and the imbedded depreciation was working. LG said it would keep some of the LCD capacity for IT.
 
But the display world changed in 2022, as demand contracted, prices fell, some below 2019 levels, and Chinese large area capacity expanded. Jeong’s plan to maintain the LCD capacity as long as it was cash positive was hit by Q222’s negative free cash flow. Speaking at an event hosted by the Korea Display Industry Association, an organization he is currently the chairman of, he said it will take some time to consider when to convert LCD lines to OLED lines. LG Display manufactures LCD TV panels at its P7 line in Paju. Sources said the company is highly likely to convert this line for OLED TV panels down the road. He must move quickly as Q222 performance resulted in a net loss, lower Y/Y revenues and an expectation that Q322 could be worse.
 



Finally, Some Good News for Samsung Electronic Vice Chairman, Jay Y. Lee
 
Vice Chairman Jay Y. Lee won a presidential pardon from graft charges, allowing him to formally take the helm of an Samsung Electronics Co. South Korean President Yoon Suk Yeol cleared the heir to the country’s biggest company of bribery charges, which Lee spent 18 months in prison before his release on parole a year ago. Lee’s return is regarded as a stabilizing force for a Korean economy buffeted by inflation, market disruption from the war in Ukraine and logistics snarls triggered by China’s Covid lockdowns.

Has China’s OEM Smartphone Business Peaked?
 
China saw a 14.7% decline in phone shipments in the Q222, according to IDC. But the situation is much worse for China’s multibillion-dollar pillars Xiaomi Corp., Vivo and Oppo which all reported steep sales declines, while losing share to Apple. Over the last year (Q321-Q222) Chinese’ OEMs shipments were down 15% Y/Y, while Apple was up 33%.
Leftovers
Apple Prepping 90-100m iPhone 14 Smartphones for Sale by Year End_08/14/22
​India Wants Low-end Chinese Phones Out_08/14/22​
​​LCD and OLED Equipment Spending to Drop 50% Y/Y in 2023_08/14/22
Lenovo to Launch OLED based Xiaoxin Pad Pro 2022_08/14/22
MEA Q222 Smartphone Shipments drop 8% Y/Y_08/14/22​
Samsung Display and LG Display Competing for the Next Generation of Micro Displays Using OLEDs and mLEDs_08/14/22
​75”/77” Mini-LED Panel Costs Fall Below OLED_08/14/22
​​Xiaomi Is Projected To Launch A Second-Gen Foldable Flagship Smartphone in 2022_08/14/22
Musing on Materials
Samsung Adopts M12 Stack to Latest OLED Displays_08/07/22
Musing on Meta Verse
Distinguishing Between the Consumer and Enterprise Metaverse_08/07/22
Musing on MicroLEDs
Aixtron Receives 1st Order for a MicroLED Production Ready MOCVD_08/07/22
​Micro LED Backplane Designs to Mirror OLED Backplanes_08/07/22
Musing on Production
Poongwon Precision Breaks DNP FMM Monopoly w/SDC_08/07/22
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​Musing on Technology

​Camera Sensors and the iPhone_08/07/22
Samsung Patents New Energy-Efficient Display Refresh Rate Technology_08/07/22
Automotive
JDI To Drive Automotive Display Sales With New Technologies_07/24/22
IT
​The OLED iPad, Waiting for a Tandem Architecture_08/14/22
Smartphones

​Samsung Galaxy Z Fold4 and Galaxy Z Flip4 Announce, OPPO Find N Fold and Find N Flip Reappear and Apple Foldable Not Ready_08/14/22
Sharp Aquos R7 Has 6.67” OLED with IGZO Backplane and Constant 240Hz Refresh Rate_08/14/22
ZTE Tries Again to Make an UPC with the Axon 40 Ultra_08/14/22
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TVs
Sony’s A90K is a 42” OLED with Great Imaging Despite the Limited Luminance_08/14/22
VR/AR​

​The Ultimate AR See Through Device Fails User Qualification_08/14/22
Wearables

Design of the Apple Watch 8 to Remain the Same_08/14/22
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Q3'2021 Updated Data 

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