Speaking of BOE, many people first think of JD.com, but in fact, it is not an e-commerce platform. It has gone from the most money-losing business to the world's number one brand in shipments. What's going on here?
Hard-won "World First"
According to the report of the market research institute, we can see that BOE won the first place in global shipments in the display industry in 2020. The market share is as high as 26.1%. For example, at least one in every 4 screens is made by BOE.
In the middle of 2021, BOE's revenue in the first half of the year alone exceeded 100 billion yuan, reaching 107.285 billion yuan! The actual profit reached 12.762 billion yuan, an increase of 1023.96% year-on-year! This growth rate is not too much to be called a "counterattack" by the outside world, because before this, BOE was well known to the public as a "money-losing goods".
At the beginning of the establishment of BOE, it was also not optimistic, because there was no technology and no foundation. It was not until 2003 that it spent 380 million US dollars and 1.05 billion Hong Kong dollars to acquire two enterprises in South Korea and Hong Kong, creating a complete industrial line, and officially let the "LCD screen" come out.
In 2005, the "LCD screen" was gradually mass-produced, breaking the long-term monopoly of imported products. However, the situation did not improve, and by 2010, BOE's cumulative loss had reached 5.3 billion yuan.
From 1998 to 2012, 14 years, BOE's annual revenue is a loss, and years of research and development "burned out" 300 billion is not empty. And this 300 billion yuan is not only BOE's own money, but also the financial support of national and local departments.
Tough ascent road
As we all know, in electronic products, the screen is undoubtedly one of the focuses of consumer attention. At the beginning of the establishment of the domestic technology industry, most domestic electronic products have been using imported screens. At that time, everyone's concept also believed that "imported is better than domestic.".
In the early stage of research and development, BOE invested a lot of financial and material resources, but not only did not achieve relevant results but also has been "burning money". Between 2010 and 2019, the domestic local authorities also provided 11 billion yuan of financial support to BOE, and only subsidized 2.6 billion yuan in 2019.
According to the local news, we can find that in order to invest in science and technology research and development for BOE, even the construction of local subway projects has stopped, but the project at that time still did not achieve good results.
At that time, on the one hand, the monopoly of Japanese and Korean companies on the domestic screen industry, on the other hand, BOE had been "burning money" for a long time to engage in research and development, and even professionals did not dare to jump out to guarantee BOE's approach. However, under the efforts of many years, BOE has indeed achieved gratifying results, not only turning losses into profits, but also allowing many domestic companies to get rid of their dependence on imported screens.
On the road of development, BOE not only has new business, but also gradually gained recognition from peers.
Go abroad
The development of BOE still has some gaps compared with South Korea's Samsung and LG, after all, the popularity and brand competitiveness are not as good as them. In 2020, Apple's iPhone 13 will use South Korea's Samsung and LG, and does not use BOE's display.
Although we are full of confidence in BOE, but internationally, it still takes time to get recognition, and at that time, the iPhone, as the flagship machine to be released, did not dare to try to take BOE.
However, with the increase of strength, Apple has adopted BOE's display panel in other product supply chains in 2021, accounting for only 5.3% of the total, but there are also 9 million displays.
At the same time, the relationship between BOE and rival South Korea's Samsung is also undergoing subtle changes, and in the news reports in related fields, it is seen that the new machine released by Samsung has BOE's OLED screen. It can also be seen that BOE is leading our domestic products out of the country step by step, so that all countries in the world can see our scientific and technological strength.
BOE flexible OLED screen has been catching up with South Korea's Samsung, the current global shipments rank second in the world, Samsung companies although there is cooperation with BOE, but BOE to bring Samsung pressure can not be underestimated, because BOE has acquired a number of LCD screen production lines to increase production, Samsung companies should not let BOE develop and indifferent, as for the future BOE will not stabilize to maintain the world's first shipments, or unknown.