Market Research Agency: The popularity of OLED smartphone displays will slow down

According to a report released by the market research agency Counterpoint Research, olED panels will have a market share of 42% in the global smartphone display panel market in 2021, up 10% over the previous year. However, this growth rate will slow down in 2022 and is expected to grow by only 2%.

Counterpoint Research's phone model tracking data shows that OLED displays for 5G smartphones accounted for 80 percent in the fourth quarter of 2021, down about 2 percent from the same period last year.

According to Businesskorea, Counterpoint Research explained that the slowdown in the growth of the OLED panel market is related to the downward pressure on the average price of 5G smartphones. Due to insufficient supply, the price of major components such as chipsets is rising sharply. However, in the context of international economic depression and intensified competition, the consumption of the smartphone market is sluggish, resulting in a decline in smartphone prices. Therefore, enterprises that urgently need to reduce production costs should maximize the price competitiveness of displays.

In addition, the supply and price of OLED panels are also obstacles. In fact, rigid organic light-emitting diode (OLED) panels can directly replace LCDs on cheap smartphones, but recently global supply has reached its limits. This is due to the fact that display companies have shifted from less profitable rigid OLED panels to high-end flexible OLED panels.

At the same time, the price of flexible OLED panels preferred by high-end models has dropped sharply around 2020, and the penetration rate is also rising.

(Proofreading/Yuki)