Since the launch 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 mobile devices is expected to grow significantly. The panel industry's development is closely tied to the consumer electronics market. Apple’s adoption of OLED panels in the iPhone X 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 market share from LCDs. Apple’s latest iPhone X series has been a major driver behind this trend. With the success of the iPhone X, the OLED panel penetration rate in smartphones is projected to rise from 28% in 2017 to 33% in 2018—surpassing the 30% threshold for the first time.
Soft OLED panels are still in limited supply for some brands, but the adoption of 18:9 full-screen designs is spreading quickly. It is estimated that the 18:9 screen ratio will jump from 9.6% in 2017 to 36.2% in 2018, becoming common across high-end, mid-range, and even entry-level smartphones.
OLED TVs are also gaining traction, especially with the addition of new brands like Sony. In 2017, OLED TVs outperformed quantum dot LCD TVs in the high-end TV market. Although second-generation quantum dot TVs are expected to enter mass production in 2018, their availability is likely to be delayed until the second half of the year. As a result, OLED TVs are expected to maintain their competitive edge in 2018, with total shipments rising from 1.5 million units in 2017 to 2.4 million in 2018.
On the other hand, large-size panels had a strong performance between Q3 2016 and Q2 2017. However, starting from Q3 2017, the supply-demand balance shifted, leading to a decline. By 2018, the oversupply is expected to reach 8.5%, up from 6% in 2017. In the first half of 2018, due to the traditional off-season and increased production from China’s 10.5-gen lines, the oversupply situation may remain challenging. The market is unlikely to recover before Q3 2018.
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