LG Electronics to use ‘flexible OLED’ in upcoming smartphone
The recently released LG (066570.KS) G6 flagship smartphone uses an LCD display, indicating that LG Electronics continues to largely ignore OLED display technology. They have used OLED displays on the LG G Flex (released 10/2013) and the G Flex2, but more to emphasize ‘bendability’, rather than the quality of the OLED display or its conformable characteristics. As Samsung Electronics (005930.KS) champions ‘flexible’ (read conformed) OLED displays for its mobile devices, and Samsung Display (pvt) is the world leader in conformed OLED commercial production, LG Electronics’ primary supplier, LG Display (LPL) has been focused on the use of flexible OLED for large panel displays, as in their ‘wallpaper’ flexible TV, and has tacitly ceded the rigid OLED space to its competitor.
Now that Google (GOOG) and Apple (AAPL) have and are expected to enter the curved OLED smartphone space, it looks like LGE is going to give in and release a conformed OLED smartphone later this year, as LG Display improves manufacturing yields on its OLED displays. Not only is LG Display expected to supply such conformed OLED displays to its parent, but Beijing based Xiaomi (pvt), is expected to receive similar displays from LGD for its Mi Note 2 successor, expected toward the end of this year. LG Display is expected to start delivering such modules toward the end of this quarter, and recently indicated that it is focused on improving its capabilities and yields on its flexible OLED process lines.
While Samsung Display has been a volume supplier of similar displays to Samsung Electronics and others for some time, the flexible OLED manufacturing timeline is still in its infancy, and LG Display and other potential producers have a better chance of competing with Samsung in the flexible OLED arena than in the rigid OLED display space. With the need to offset the potential loss of a portion of Apple’s LCD iPhone display business, LG Display is making a concerted effort to bolster its small panel OLED manufacturing, and will spend 70% of its 2017 capex budget on OLED, with a new emphasis on small panel and flexible OLED. Last year, the OLED capex was focused on expanding the company’s large panel OLED TV capacity, which is now capable of producing ~1.6m units this year.
Now that Google (GOOG) and Apple (AAPL) have and are expected to enter the curved OLED smartphone space, it looks like LGE is going to give in and release a conformed OLED smartphone later this year, as LG Display improves manufacturing yields on its OLED displays. Not only is LG Display expected to supply such conformed OLED displays to its parent, but Beijing based Xiaomi (pvt), is expected to receive similar displays from LGD for its Mi Note 2 successor, expected toward the end of this year. LG Display is expected to start delivering such modules toward the end of this quarter, and recently indicated that it is focused on improving its capabilities and yields on its flexible OLED process lines.
While Samsung Display has been a volume supplier of similar displays to Samsung Electronics and others for some time, the flexible OLED manufacturing timeline is still in its infancy, and LG Display and other potential producers have a better chance of competing with Samsung in the flexible OLED arena than in the rigid OLED display space. With the need to offset the potential loss of a portion of Apple’s LCD iPhone display business, LG Display is making a concerted effort to bolster its small panel OLED manufacturing, and will spend 70% of its 2017 capex budget on OLED, with a new emphasis on small panel and flexible OLED. Last year, the OLED capex was focused on expanding the company’s large panel OLED TV capacity, which is now capable of producing ~1.6m units this year.
LG G-Flex 'bendable' display - Source: LG Electronics
LG Display's 'Wallpaper' TV - Source: LG Display
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