Display Market Restructuring Accelerates...LCD Troubled?

As the global recession accelerates, so does the restructuring of the display market. A reaction to relatively inexpensive LCD (liquid crystal display) products being hit directly by the downturn. Due to the decrease in LCD demand and the decrease in overall market demand, the market share is expanding as the demand for high-end OLED (Organic Light Emitting Diode) products is maintained.

In the IT display market until last year, many people believed that LCD was still the general trend. Because of high technology maturity and low production cost, it is beneficial. However, due to the decline in sales prices, the profitability has declined, and the demand for high-definition OLEDs such as TVs has also increased following mobile. Coupled with the favorable advantages in power consumption and other aspects, the attention to OLED has risen sharply.

The industry is paying attention to the sluggish LCD situation, and the OLED camp is rapidly expanding its proportion. While the overall demand has decreased, the demand for OLED panels has maintained the original forecast, and this phenomenon has occurred. An industry insider said: "We are paying attention to the restructuring due to market changes." "Panel makers' OLED conversion may speed up. If the economic downturn lasts for a long time, the sluggish performance of LCD companies may expand, leading to mergers and acquisitions." The market is active."

In addition, Apple has also decided to apply OLED to tablets and laptops, etc. Apple ranks first in the tablet computer market, and even if the sales of all tablet computers of later companies are added up, it will not be able to reach the Apple iPad. Therefore, Apple's OLED application is considered to be an event that will greatly change the display supply chain pattern. Samsung Electronics has also filled its notebook and tablet lineups with OLEDs.

China's display industry entered the small and medium-sized OLED market in 2016, but the market share was less than 5% until 2018, failing to stand out. From a technical point of view, this is because it failed to surpass Korean companies such as Samsung Display and LG Display. However, with the successive adoption of IT equipment by Chinese electronics companies, the output has increased and the product quality has also improved. Affected by this, the share of Chinese companies in the small and medium-sized OLED market will exceed 10% for the first time in 2020, and it is expected to exceed 20% this year.

However, the industry believes that considering the efficiency of panel manufacturing and the overwhelming market share of LCDs, the advantageous structure of LCDs will last for a long time. A related person in the display industry said: "Although the expansion of OLED share is a market trend, there are limitations such as firing problems and relatively expensive prices."

Generally speaking, although the overall sales volume is decreasing, the demand of high-end purchasing groups with higher spending power remains at a certain level.