Samsung Display Commercializes the Foldable Biz
Samsung Display (pvt) has been making foldable displays since mid-2019 and last year produced ~2.7m units, which in terms of smartphones is a very small share, however while they are not the only producer of foldable smartphone displays, we believe they accounted for close to 90% of foldable display production last year, with their only commercial customer being parent Samsung Electronics (005930.KS). That will no longer be the case as of October, when SDC is expected to begin producing foldables for Google and seems to have snagged at least two more Chinese smartphone brands that are looking for device releases this year.
Sources in Korea are indicating that SDC will also be providing the primary foldable displays for anticipated smartphones from Xiaomi (1810.HK) and Vivo (pvt) along with Google (GOOG), on top of the expected August announcement from Samsung itself. The Xiaomi device is expected to have a secondary screen produced by Chinastar (pvt) and the Vivo phone’s 2nd screen from BOE (200725.CH). Oppo (pvt) technically owned by the same parent as Vivo, was also expected to release a foldable device this year, which now seems to have been pushed to 2022, but also seems to be focused on SDC’s displays despite collaboration with BOE and Visionox (002387.CH).
What makes this a bit unusual is that SDC has managed to supplant a number of prototypes that these smartphone brands have shown in the past, with primary foldable displays from Chinese panel producers. It does not seem that when it comes down to final production, that any of the other potential foldable display producers can match SDC’s expertise, which in the case of foldable is far more important than price. SDC’s ability to produce enough volume to satisfy both its parent and new customers gives them a significant lead over other foldable panel producers who are just beginning to mater the panel category but are likely far below SDC’s yield levels. At some point in the future, there will be price competition in the foldable space, but currently we expect both the ability to meet unit volume levels and the quality of the display are the key factors in the decision as to whose displays to buy, especially for those who are releasing initial foldable product.
Sources in Korea are indicating that SDC will also be providing the primary foldable displays for anticipated smartphones from Xiaomi (1810.HK) and Vivo (pvt) along with Google (GOOG), on top of the expected August announcement from Samsung itself. The Xiaomi device is expected to have a secondary screen produced by Chinastar (pvt) and the Vivo phone’s 2nd screen from BOE (200725.CH). Oppo (pvt) technically owned by the same parent as Vivo, was also expected to release a foldable device this year, which now seems to have been pushed to 2022, but also seems to be focused on SDC’s displays despite collaboration with BOE and Visionox (002387.CH).
What makes this a bit unusual is that SDC has managed to supplant a number of prototypes that these smartphone brands have shown in the past, with primary foldable displays from Chinese panel producers. It does not seem that when it comes down to final production, that any of the other potential foldable display producers can match SDC’s expertise, which in the case of foldable is far more important than price. SDC’s ability to produce enough volume to satisfy both its parent and new customers gives them a significant lead over other foldable panel producers who are just beginning to mater the panel category but are likely far below SDC’s yield levels. At some point in the future, there will be price competition in the foldable space, but currently we expect both the ability to meet unit volume levels and the quality of the display are the key factors in the decision as to whose displays to buy, especially for those who are releasing initial foldable product.
RSS Feed