Samsung Display is planning to start using OLEDs for tablets’ displays over LCDs. It is going to gradually reduce supply of LCDs for tablets and increase supply amount of OLEDs. It is predicted that Samsung Display will ultimately use OLEDs for entire tablets’ displays. Samsung Electronics has decided to use OLEDs for tablets and laptops that will be released this year. Apple is also considering using OLEDs for its iPads.
According to industries on the 21st, Samsung Display is going to stop operating 5th generation LCD lines and slowly reduce output of 7 to 12-inch LCDs that have been supplied for tablets. It is heard that Samsung Display will gradually reduce supply of LCDs for iPads.
LG Display, Samsung Display, and Sharp have been supplying LCDs to Apple for iPads. Samsung Display has been supplying LCDs to Apple since 2012. About 25% of LCDs that were supplied by Samsung Display Based on Apple’s iPad Pros,
Samsung Display is going to stop operating 5th generation L6 and L6-Wing Lines that have been producing mostly panels for IT and LCDs for Apple in third quarter of this year and transfer supplies from L6 to 8th generation L8 Line. It is predicted that L8 Line will mostly produce panels for LCD TVs as supply and demand of large LCDs have recently become very tight.
Samsung Display supplied about more than 20 million panels to Apple in first quarter of last year. However during first quarter of this year, it is going to supply about 600,000 panels which is only about 3% of panels that were supplied in last first quarter. Market research company called IHS Market is estimating that Samsung Display’s supplies will be further reduced to a level between 300,000 and 400,000 during second half of this year.
It seems that supply of LCDs for tablets that have been supplied to Samsung Electronics will be cut off as well because Samsung Electronics has decided to use OLEDs for its laptops and tablets that will be released this year. Samsung Electronics is set to release Android-based 9.7-inch tablet called ‘Galaxy Tab S3’ and Windows 10-based 10.6-inch and 12-inch 2-in-1 tablet called ‘Galaxy Book’. Followed by Smartphones, OLEDs have also become a trend for tablets and laptops.
There are signs that Apple is also considering about using OLED panels for its iPads. It is heard that Apple is internally verifying performance and quality of OLEDs that will be used for tablets. When these OLEDs pass standards, there is a possibility that Apple will use OLEDs for iPads.
Samsung Display has been increasing output of OLEDs for tablets and laptops since January. While it was producing 20 million to 25 million OLEDs per month during second half of last year, now it is producing about 30 million OLEDs per month after January. LENOVO and HP have put out 2-in-1 laptops that are equipped with OLED panels. Samsung Electronics is also increasing number of models that are equipped with OLED panels as it looks to release new models with OLED panels.
“It will be hard for Samsung Display to aggressively increase amount of supply of OLED panels for tablets and laptops as supply of 5 and 6-inch OLED panels for Smartphones is very tight.” said a representative of an industry. “When Samsung Display starts to supply OLED panels to Apple for its iPhones sometime during first half of this year and gets rid of low generation fabless companies, its profitability will be much better.”
Staff Reporter Bae, Okjin | withok@etnews.com