Samsung recently announced its financial results for Q3 2017, and Specifically regarding its OLED business, SDC increased its sales of flexible OLEDs, but prices of rigid OLED panels declined. DSCC estimates that the utilization at Samsung's OLED fab fell from mid-80% to mid-70% mostly due to delays in shipments to Apple.

The low utilization rate resulted in a decline in OLED operating income, which fell 37% from Q2 2017. Revenues actually increased (as you can see in the chart above), but pricing pressure on rigid OLED panels meant that SDC's OLED operating margins fell from 22.5% in Q2 2017 to 12.4% in Q3 2017. DSCC estimates however that OLED profitability will rebound quickly as Apple are likely to increase iPhone X shipments and as utilization and yield improve. The higher demand for higher-cost flexible OLEDs are likely to enable SDC to return its operating margin to over 20%.

MagnaChip reported its financial results for Q3 2017. The company generated revenues of $176.7 million with a 28.% gross profit margin and a net income of $5.6 million.

Regarding its OLED business, Magnachip was pleased to report that revenue from OLED display driver ICs increased 15.6% from Q2 2017. The company currently anticipate that it has the potential to generate OLED revenue that will exceed 50% growth and exceed $100 million in 2018.

Universal Display reported its financial results for Q3 2017. Revenues in the quarter reached $61.7 million, up 104% from Q3 2016 ($30.2 million) driven by strong material sales and also increased royalty and license fees. Net income in the quarter was $13.5 million (up $15 million from a $1.5 million loss in Q2 2016).

UDC's material sales increased 100% from Q3 2016 to reach $12 million, while royalties and license fees increased 131% to reach $12 million. UDC increased its revenue guidance for the full year 2017 to $310 million to $320 million. Revenues in the first nine months were $219.8 million.

According to IHS, production costs of 55" 4K OLED TVs have declined 55% from the beginning of 2015 to Q2 2017. IHS estimates that it costs $582 for LGD to produce a 55" OLED panel, and the price will continue to drop to reach $242 in 2021.

In early 2017 the cost of a 55" OLED TV is about 2.5 times the production cost of an equivalent 4K LCD TV panel. The price gap has narrowed as it was 4.3 times back in Q1 2015. The price in material cost is currently around 1.7 times - but other factors such as yields and depreciation increase LGD's production costs.

OLED microdisplay maker eMagin announced that it has signed a development and licensing agreement with a tier-one consumer electronics company permitting it to use eMagin technology, specifically its direct-patterned OLED microdisplays.

eMagin says that this is a major step towards the commercialization of the company's proprietary OLED microdisplay technology. It seems that according to the agreement the Tier-One CE company will only pay eMagin licensing revenues if and when it decides to commercialize its microdisplays.

In July 2017 LG Display announced that it has decided to build a 8.5-Gen (2200x2500) OLED line in Guangzhou, China, to make OLED TV panels. The Korean government hesitated whether to approve this plan, as it sees OLED as a strategic technology Korea' economy and this is the first time a Korean company plans to build an OLED fab outside of Korea.

According to a rather confusing report from Business Korea, it seems that the Korean Government committee decided to approve this plan, and LG is now free to start constructing its fab. The new fab, according to the initial plan at least, will be a joint-venture with the local government and LGD will hold a 70% share. The total cost for this fab will be KRW2.6 trillion ($2.3 billion USD).

Apple's OLED iPhone X is an expensive device - the basic model costs $999 - but it won't stop here. Apple announced the costs of repairing the new flagship smartphones, and these are considerable higher compared to Apple's other phones.

Fixing the SDC 5.8" 1125x2436 flexible Super AMOLED outside of the warranty will cost $279, over $100 more than the cost of fixing the display of the iPhone 8 ($149) or iPhone 8 Plus ($169). Apple offers its Care+ plan that extends its initial 90-day coverage to 2 years, which may be a wise option due to the high cost of repairs. The Care+ package costs $199 and a screen repair will then cost $29.