"Clear Limits of Smartphone OLED... Need to Pioneer Tablet and Notebook Markets"

Samsung, LG, and Others Respond to 2024 Apple iPad and MacBook Orders

K-Display Facing a Crisis. Business Restructuring Towards High Value-Added Displays Is Urgently Needed. The photo shows LG Display's 'Stretchable Display'. (Photo by LG Display)

[Asia Economy Reporter Moon Chaeseok] Although the competition for securing orders of new mobile products with OLED (organic light-emitting diode), such as Apple iPhone 14 Pro, is fierce, there is a growing view that new markets like tablet PCs and laptops need to be developed. This is based on the judgment that there are long-term limitations to market growth. Experts point to the Apple tablet iPad and laptop MacBook OLED markets, expected to be released in 2024, as the future battlegrounds.

On the 12th, synthesizing analyses from global market research firm Omdia, the industry, and financial investment sectors, it is forecasted that as TV demand recovers next year, display panel prices will rise moderately. Omdia expects that by the second half of next year, demand for display area will return to normal levels, with an overall increase of 6.2% compared to this year. If the global inflation trend eases, monetary authorities in various countries will likely moderate interest rate hikes, increasing demand, and the recent decline in panel prices will also act as a positive factor.

Park Jin-han, head of Omdia’s Display Research Division, explained, "Panel prices and retail prices, which have been falling for over a year, may stimulate consumer sentiment. In particular, the recovery speed of demand for large-sized TVs, whose prices have dropped significantly, could accelerate, leading to a rapid recovery in overall display area demand."

From the perspective of display panel companies, this is expected to be favorable for expanding the high value-added OLED business. However, since reliance on TVs alone is not possible, attention must be turned to mobiles, tablets, and laptops. Among these, there is a strong call to quickly expand the tablet and laptop portfolio to secure long-term revenue sources.

According to a survey released by market research firm UBI Research on the 21st of last month, OLED shipments for IT devices are expected to grow at an average annual rate of 39%, from 9.5 million units this year to 48.8 million units in 2027. Considering that the annual laptop shipment volume is around 200 million units, it means that by 2027, about one-quarter of laptops are likely to use OLED panels. This is why the laptop OLED market is emerging. In tablets, Apple accounted for 38.6% of the global tablet shipment volume of 158.29 million units last year, indicating a bright outlook for the tablet OLED market as well.

The problem is that the areas to expand further in the OLED market are limited. In the case of LG Display, its market share in the large OLED segment is already around 90%, so it is reported that the company plans to focus on small and medium-sized OLEDs for the time being. However, since OLEDs have long been installed in mid- to low-priced smartphones, companies have no choice but to look to new markets. Major panel companies such as Samsung and LG are urged to make a decisive move in the Apple foldable tablet iPad and laptop MacBook OLED markets, which are expected to be launched in 2024.

According to the industry, Samsung and LG have decided to build an 8.7-generation line, which has about 9% higher production efficiency than the previously expected 8.5-generation (2200×2500 mm) line, to expand their market share in Apple iPad and MacBook products. Kim Chan-woo, a researcher at Shinhan Investment Corp., said, "For the OLED market to continue growing, application expansion is necessary, and tablets and laptops are expected to play a major role in market expansion. If OLED application to North American customer products is fully realized in 2024, domestic customers will also make corresponding investments."