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UBI – OLED Panel Prices to Drop in 2021 Due to Huawei’s Production Drop
UBI reported that the prices of OLED panels will soon fall due to extreme oversupply due to the demand reductions and the sanctions levied by the United States of America against Huawei. Covid-19 l and less disposable income led to a reduction in the expected demand for OLED panels. UBI claims 113m smartphone with OLED displays were shipped in Q320 down 17.9% Y/Y
The UBI forecasts Q420 demand for OLED panels will continue to fall and as production remains constant, they project a fall in panel prices. In Q220, Huawei shipped around 53.4% of the total OLED smartphones in China. OPPO (18.6%) Xiaomi (14.8%) and vivo (8.3%) in total were less than Huawei. UBI points to Huawei’s 2021 shipment total now forecasted at 50m, a drop of 140 from 2020. Offsetting the drop is Apple’s increase used of OLED based iPhones growing from 50% 75% in 2020 to 75% and 100% in 2021 and 2022 respectively.
UBI seems to be discounting the late release of the iPhone 12 in Q320 and the expected uptake in Q420. In addition, despite the drastic drop in Huawei’s production, they are expected to focus on the high end (OLEDs) to get the most revenue out of their components. Further, OPPO, Xiaomi ad vivo have already taken steps to replace the Huawei volume.
UBI reported that the prices of OLED panels will soon fall due to extreme oversupply due to the demand reductions and the sanctions levied by the United States of America against Huawei. Covid-19 l and less disposable income led to a reduction in the expected demand for OLED panels. UBI claims 113m smartphone with OLED displays were shipped in Q320 down 17.9% Y/Y
The UBI forecasts Q420 demand for OLED panels will continue to fall and as production remains constant, they project a fall in panel prices. In Q220, Huawei shipped around 53.4% of the total OLED smartphones in China. OPPO (18.6%) Xiaomi (14.8%) and vivo (8.3%) in total were less than Huawei. UBI points to Huawei’s 2021 shipment total now forecasted at 50m, a drop of 140 from 2020. Offsetting the drop is Apple’s increase used of OLED based iPhones growing from 50% 75% in 2020 to 75% and 100% in 2021 and 2022 respectively.
UBI seems to be discounting the late release of the iPhone 12 in Q320 and the expected uptake in Q420. In addition, despite the drastic drop in Huawei’s production, they are expected to focus on the high end (OLEDs) to get the most revenue out of their components. Further, OPPO, Xiaomi ad vivo have already taken steps to replace the Huawei volume.
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