AMOLED panels account for over 27% of smartphone market share. Can Chinese panel manufacturers surpass Samsung?

With the support of many major mobile phone brands, AMOLED panels have become the hottest mobile phone components. It is estimated that the penetration rate of AMOLED panels in the mobile phone market will exceed 27% in 2017 and may reach 50% in 2020, swallowing up the LCD mobile phone panel market.

AMOLED panels replace LCD panels and become a new trend adopted by many mobile phone brands

According to the latest report on the Chinese smartphone market released by market research firm CINNO Research, in 2016, sales of smartphones using AMOLED screens reached 99 million units, a significant increase of 144% over 2015.

Among all AMOLED screen mobile phones sold in 2016, OPPO sold a total of 36.7 million units, ranking first with a market share of 37.1%. The second-ranked vivo sold a total of 27.9 million units, accounting for 28.2% of the market, and the two combined for 65.3%; Samsung AMOLED mobile phones ranked third with a total sales of 17.2 million units, accounting for 17.4% of the market; Gionee, Meizu MEIZU, Huawei, Lenovo (including ZUK and MOTO), Xiaomi, ZTE, and Coolpad sold a total of 15.1 million units, accounting for 15.3%.

According to the current supply chain information, Apple will launch three new iPhone models in the second half of 2017. The biggest highlight among the three models is the high-end iPhone. This model will be equipped with a 5.8-inch AMOLED panel for the first time, with a resolution of 2K level. However, due to the poor yield of 3D glass and the difficulty in passing the drop test, it is expected that the side hyperboloid design will not be adopted, and the original flat design will be maintained. The physical Home button function will be integrated into the panel, which will greatly reduce the actual body size.

As for Apple's other two new 5.5-inch and 4.7-inch models in 2017, they will still use LTPS LCD panels. In terms of pricing, industry insiders estimate that Apple's new AMOLED flagship phone may cost more than US$1,000 due to its innovative elements, but the price of the 4.7-inch model is expected to be reduced to attract consumers to buy.

Global market research firm TrendForce predicts that total shipments of new iPhones this year will exceed 100 million units, with the highest-end AMOLED models accounting for the largest proportion of overall shipments, driving Apple's full-year smartphone shipments to 230 million units, a year-on-year growth of nearly 6%.

Apple and Samsung monopolize AMOLED panel production, domestic mobile phones may be squeezed out

Undoubtedly, AMOLED panels have become the favorite of many mobile phone brands. However, as more and more smartphones begin to switch to AMOLED panels, the shortage of market inventory will be exacerbated.

It is reported that due to the participation of Apple this year, the shipment volume of AMOLED panels will hit a record high, and the supply chain war between manufacturers will become more and more intense.

The ultimate beneficiary of the panel war is undoubtedly Samsung Display, which currently holds more than 90% of the AMOLED panel market share.

TrendForce's latest survey points out that as of now, Samsung and Apple have taken up the majority of AMOLED mobile phone panel production in 2017. The production of Chinese mobile phone brands may be squeezed out as a result, which may be detrimental to these brands' layout in high-end models and affect this year's shipment growth.

Chinese panel manufacturers accelerate AMOLED layout, trying to break Samsung's monopoly

As new AMOLED panel production capacity was just opened in 2017, apart from Samsung Display entering Apple's supply chain, the chances of other manufacturers getting a piece of the pie are very low. Digitimes Research pointed out that it is estimated that the penetration rate of AMOLED panels in the smartphone market in 2017 will be 27.6%, an increase of 3.3 percentage points from 2016.

However, according to Digitimes research, Chinese AMOLED panel makers will begin to challenge Samsung's dominant market position in 2019 as they continue to increase production and Chinese smartphone manufacturers are expected to increase the adoption of localized panels.

Digitimes research shows that seven Chinese panel manufacturers have expanded existing or established new AMOLED production capacity, and the total annual production capacity is expected to increase from 272,000 square meters in 2016 to 1.548 million square meters in 2018, 4.444 million square meters in 2019, and 7.864 million square meters in 2020, with a compound annual growth rate of 131.9% from 2016 to 2020.

BOE Technology and Tianma Microelectronics have already established AMOLED production lines, while OLED manufacturers Visionox, Everdisplay and Royole will establish or expand AMOLED panel production capacity. In addition, China's touch screen manufacturer Truly Optoelectronics has purchased production equipment from Samsung Display to produce AMOLED panels.

Digitimes Research pointed out that in 2020, BOE Technology will become China's largest AMOLED panel manufacturer, accounting for 35.0% of the total annual production capacity, Tianma Microelectronics 17.6%, Visionox 14.0%, Everdisplay Optoelectronics (Shanghai) 11.6%, China Star 9.5%, Truly Optoelectronics 7.8% and Royole Technology 4.5%.

In the future, as the AMOLED production capacity of Apple's supply chain increases, the iPhone is expected to fully adopt AMOLED panels. In addition, other panel manufacturers will also enter the market in a big way, which will increase the opportunities for other mobile phone brands to adopt AMOLED panels. It is estimated that the penetration rate of AMOLED panels in the smartphone market will increase to 47% in 2019 and reach 50% in 2020, which will eat up a large part of the LCD mobile phone panel market.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.