Apple hollows out Samsung's OLED production capacity, forcing China to localize production

Apple spared no effort to solve the production capacity problem for iPhone 8. With the advancement of technology, the advantages of OLED screens are becoming more and more prominent, and the disadvantages are constantly being made up. At the same time, more and more panel manufacturers have begun to deploy OLED screens, and OLED is also known as the standard configuration of future mobile phones. This also means that 2017 will be a year of great changes for the mobile phone industry. With the promotion of mobile phone giants such as Apple, the popularity of OLED will be faster and faster.

However, OLED production capacity has been monopolized by Samsung. We are not unfamiliar with OLED screens. The most common one in the mobile phone market is Samsung's AMOLED. Its own Galaxy series of mobile phones have always been loyal fans of AMOLED. Recently, Korean media broke the news that Apple and Samsung may have signed an OLED panel order agreement worth up to US$2.6 billion.

Apple has emptied out its production capacity. Recent news shows that this year's new iPhone will be fully equipped with OLED screens. In order to ensure the initial supply of the new iPhone, Apple has also begun to purchase spare parts on a large scale, with OLED screens becoming a top priority. Insiders revealed that Samsung, which has a monopoly in the field of OLED screens, has almost had its production capacity divided up.

Since the thickness of the organic film in OLED devices is very thin, high-end precision manufacturing technology is required, and the cost is difficult to reduce. OLED suppliers are controlled by a few manufacturers: Samsung/LG. In the global smartphone organic screen market, Samsung Electronics alone accounts for 95% of the market share. The problem brought about by this situation is high risk and no backup resources. As a result, Samsung OLED screens were once hard to find at high prices.

OLED technology is mainly in the hands of companies such as Samsung and LG that have core screen technology. The influx of giants such as Apple will inevitably lead to a large-scale shortage of OLED curved screens. Data shows that Samsung's sales of OLED panels to Chinese mobile phone manufacturers account for more than 28%. Not only is OPPO R9's production capacity affected by the shortage of Samsung screens, but there are also market rumors that Samsung has restricted the supply of OLED screens to Huawei, causing Huawei's Mate9 series of mobile phones to be delayed in their launch. For domestic mobile phone companies in 2017, OLED curved screens will become the most critical "hard currency".

Samsung's monopoly has forced the localization process. Domestic panel companies will soon achieve mass production, including BOE, Huaxing Optoelectronics, and Tianma Electronics, which have also revealed the progress of OLED panel production lines and mass production schedules. Chinese companies are implementing large-scale investments in OLED panels to compete with Korean manufacturers. As Chinese companies launch a large-scale offensive, domestic OLED panels may develop into a market comparable to Samsung panels in the future. It is expected that around 2018, it will surpass South Korea in the ranking of production capacity of various countries and take the top spot in the world. Not only that, Chinese companies are also extending their business to the field of OLED panels, which makes the layout of Chinese companies' layout of cutting-edge electronic components increasingly clear.

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.