DSCC updated its capacity and demand outlook for the OLED industry. DSCC says that the oversupply situation for smartphone OLEDs will continue to effect the industry for years ahead.
According to DSCC the reason for the oversupply is Samsung's near-monopoly on flexible OLED phone panels - and the fact that the company keeps prices high and prefers high profit margins even though it leads to low utilization rates. DSCC sees China's capacity (which includes LG's Gunagzhou fab) share to rise from 5% in 2017 to 30% in 2020 and finally to 49% in 2025.
Looking at the TV industry, DSCC sees SDC (with its QD-OLEDs), CSoT and BOE starting to produce OLED TVs which will enable the capacity to increase at a 32% CAGR from 2019 to 2025. LGD's market share will fall from 100% in 2020 to 55% in 2025 (SDC will be the second larger producer with 23% of the industry capacity). In 2025 14.5 million OLED TV panels will be produced.
DSCC sees actual OLED smartphone panel production to rise from 466 million in 2019 to 941 million in 2025. Foldable smartphones will reach 62 million units in 2025.
