Since the release of the iPhone X, face recognition technology has not only boosted the OLED market but also made OLED screens increasingly popular. Looking ahead, the use of OLEDs in the mobile phone industry is expected to grow even further. The panel industry's development trend is closely tied to the consumer electronics market. Apple’s iPhone X, which recently adopted OLED panels, has sparked a new wave of demand for flexible displays.
According to WitsView, a leading analysis agency, the small-size panel market is witnessing a shift as OLEDs gradually take over from LCDs. Apple’s latest iPhone X series is a major driver behind this change. With the success of the iPhone X, it is estimated that the share of OLED panels in the smartphone market will rise from 28% in 2017 to 33% in 2018, surpassing the 30% threshold for the first time.
Another key area of focus is the soft OLED panel market. Although these panels are still limited to a few premium brands, the adoption of 18:9 full-screen designs is spreading more broadly and quickly. It is projected that the penetration rate of 18:9 full-screen smartphones will jump from 9.6% in 2017 to 36.2% in 2018, covering both high-end and mid-range devices, and even some entry-level models.
OLED TVs are also gaining traction, especially in the high-end market. With the addition of brands like Sony and weak sales of quantum dot LCD TVs, OLED TVs have seen strong performance in 2017. Although second-generation quantum dot TV panels are expected to launch in 2018, their mass production won’t begin until the second half of the year. As a result, OLED TVs are likely to maintain their competitive edge in 2018, with total shipments increasing from 1.5 million units in 2017 to 2.4 million in 2018.
In contrast, the large-size panel market experienced a strong period from the third quarter of 2016 through the second quarter of 2017. However, supply and demand began to shift in the third quarter of 2017, leading to a downturn. It is estimated that the oversupply of large-size panels could reach 8.5% in 2018, up from 6% in 2017. In the first half of 2018, due to the traditional off-season and the operation of China’s 10.5-generation panel lines, the oversupply situation may remain challenging. The market is not expected to recover until the third quarter of 2018.
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