Samsung's Growing Influence in Phone Displays

AMOLED Smartphone Display Market Share Continues to Grow
Samsung Display Dominates Over 80% of the Global Market

[Asia Economy Reporter Changhwan Lee] In the smartphone display panel market, the market share of LCD is expected to decrease, while the market share of Active Matrix Organic Light Emitting Diode (AMOLED) is projected to continuously increase.

Smartphone companies struggling due to the spread of the novel coronavirus infection (COVID-19) have focused on selling high-spec devices with high profitability. Samsung, which dominates the AMOLED market, is expected to increase its influence further.

According to market intelligence firm WitsView on the 8th, the global smartphone market share of AMOLED display panels is expected to reach 35.6% this year. This is the largest scale ever, representing a 4.6 percentage point increase from 31% last year.

While the market share of AMOLED panels is increasing, the influence of LCD panels, which have dominated the existing smartphone panel market, is declining. The market share of Low-Temperature Polycrystalline Silicon (LTPS) LCD smartphone panels is expected to decrease from 40.2% last year to 37.8%. Amorphous Silicon (a-Si/IGZO) LCD is also expected to decline from 28.8% to 26.6%.

AMOLED, a type of OLED, has a higher unit price than LCD but is considered a next-generation display due to its excellent color reproduction, fast response speed, and ability to be manufactured in various forms. AMOLED has been used in products such as the recently popular foldable smartphones.

It is analyzed that the number of smartphone companies adopting AMOLED panels is increasing due to COVID-19. As smartphone sales slowed because of COVID-19, companies have focused on selling high-spec smartphones with higher profitability. In particular, Apple, which previously used LCD panels, has recently been actively using AMOLED panels, which also has an impact.

With companies actively adopting AMOLED, its market share has steadily increased every year, and it is expected to surpass LTPS LCD and become the number one in market share within one to two years. A WitsView official said, "Companies are actively adopting AMOLED panels not only for flagship models but also for mid-range smartphones, so the position of LCD panels will gradually narrow," and predicted, "AMOLED panels will become the mainstream in the market within a few years."

Accordingly, Samsung's influence in the smartphone display market is also expected to grow. According to market intelligence firm Omdia, Samsung Display accounted for about 86% of the global AMOLED panel market share based on shipments last year. Omdia also expects Samsung Display's influence to increase as the shipment volume of flexible (bendable) AMOLED panels is projected to surge by 50% compared to last year.

However, the recent active entry of Chinese companies into the OLED business is a challenge. Samsung Display's AMOLED panel market share once approached 100%, but the recent downward trend is also attributed to Chinese companies. Currently, Chinese AMOLED panel production capacity holds a market share in the 20% range globally and is expected to rise to the 30% range within a few years.

An Omdia official forecasted, "Despite the smartphone industry's setbacks due to COVID-19, the trend of manufacturers upgrading their products with AMOLED panels, such as Apple expanding its AMOLED panel product lineup, will strengthen."

This content was produced with the assistance of AI translation services.