DSCC says that Samsung Display's OLED utilization has started to improve as it is starting to produce new OLED displays for new smartphones by Samsung, Apple and other makers.
SDC's utilization rates started to improve in May 2018, with the rigid A2 OLED fab expected to exceed 80% in June. At 100% yields, the A2 can produce 175,000 monthly substrates. DSCC says that 5.5-inch to 6-inch rigid OLEDs cost will fall to $23 in Q3 2018, with the price premium over LTPS LCDs will be around $5. DSCC says that at such a small gap they expect demand for rigid OLEDs will remain strong.
At Samsung's A3 flexible OLED fab the utilization rates have increased too, but these are still low - 31% in April and 37% in May. In June the utilization rate are expected to rise to 52%, as Samsung started to produce 5.85" panels for the next-gen iPhone X in May and 6.46" for the next-gen iPhone X Plus in June. DSCC is still not clear what will be decline in utilization in Q1 2019 as currently they are engaged in build-up towards the next-gen iPhone introductions in late 2018.
DSCC also updates on SDC's OLED revenues. In Q2 2018 revenues are expected to fall 16% from the previous quarter and rise 2% from Q2 2017 to reach $4.4 billion. The production increase that started in April will only effect SDC's revenues in Q3 2018, and DSCC expects the quarter revenues to increase 52% from Q2 2018 (and 35% from Q3 2017) to $6.7 billion. For the entire 2018, OLED revenues at SDC are expected to increase 11% from 2017 to reach $23.4 billion.
