Q4’18 equipment supplier financial data is often not released until the last day of March in Korea which causes a delay in releasing our aggregated look at quarterly results for equipment suppliers in our Quarterly Display Supply Chain Financial Health Report. So, finally, we have the financial data for 22 equipment companies covering company revenues, display equipment revenues, bookings, backlog and more. As shown below, it was a down quarter from record Q3’18 results for display capex, total display equipment spending and display equipment revenues for the 22 companies (21 after the merger between Wonik IPS and Wonik Tera) we follow.
We the long-awaited earnings releases of CPT and CEC Panda this week, we now have almost all the financial results of panel makers for Q4 2018, and we have compiled a comparison view as part of DSCC’s Quarterly Display Supply Chain Financial Health Report. The comparison highlights the dominant position of Samsung in terms of industry profits, as well as some of the challenges faced by the industry.
DSCC has updated its Quarterly OLED Shipment and Fab Utilization Report for Q1, and the report contains a treasure trove of data for analyzing and understanding the OLED industry, some of which we will share here. The report covers units, area, screen sizes, revenues and ASPs for eleven different applications of OLED panels, plus supply chain relationships for phones and TVs and fab utilization figures for OLED and LTPS LCD fabs.
Last month in the DSCC Weekly Review, we had discussed this report and described the Q4 2018 results and the full year 2019 forecast, and separately we reported on the update to fab utilization, so for this issue we will turn our attention to some of the quarterly data in our outlook for 2019 and on our long-term forecast. Our first chart covers OLED units shipments by application. While smartphone remains the dominant application (in unit terms) for OLED, Smart Watch has firmly established itself in the number two position, with nearly 15% of OLED units in Q4 2018 in this application. Smartphone and Smart Watch together make up 97% of OLED panel units.
Foxconn this week issued a press release announcing its intentions to break ground on manufacturing facilities at its complex in Mount Pleasant, Wisconsin, in what may have been an effort to deflect criticism that company efforts on the project are not progressing.
Foxconn said that the next phases of construction of its Wisconsin Valley Science and Technology Park in Racine County, Wisconsin “will begin by Summer 2019 and the facility will begin production in the 4th quarter of 2020.”
DSCC has distributed its latest capex and capacity forecasts to its Quarterly Display Capex and Equipment Service customers.
Some of the key highlights include:
As expected, Huawei announced its first foldable smartphone, which it calls the Mate X, on Sunday February 24th, the day before the Mobile World Congress (MWC) started. It is an outfolding design as you can see below which has 3 display configurations:
Samsung wisely got the jump on the rest of the smartphone industry by holding a product launch in San Francisco on February 20th, 5 days ahead of the Mobile World Congress (MWC) show which starts on February 25th in Barcelona. Called Samsung Unpacked, Samsung wanted to make sure it introduced its foldable smartphone before Huawei and others and also got all the media’s attention on its S10 launch.
OLED panel revenues will increase by 8% in 2019 to $28.6 billion, according to the latest update of the DSCC Quarterly OLED Shipment and Fab Utilization Report for Q1 2019, with double-digit growth in area and units, as OLED continues to take a larger share of smartphone and TV shipments.
The Q1 update of this report gives DSCC’s revised forecast for 2019 for eleven different applications for OLED panels, with detailed figures for units, revenue, area, average selling price (ASP), and other parameters with splits by application, panel supplier, substrate (rigid/flexible/foldable), and brand. The report also provides final figures for Q4’18 and for the full year 2018 with the same detail.
We have updated our monthly and quarterly OLED and Mobile LCD fab utilization data through March and distributed pivot tables and Powerpoint slides. This data includes:
The utilization data can be segmented by:
It was a record week after the Chinese Lunar New Year for Chinese display stocks with:
It was an unusual quarter for Samsung Display in that OLEDs suffered their largest Y/Y decline to date, while LCD margins improved significantly.
Samsung Display’s revenues fell 10% Q/Q and 20% Y/Y to $8.13B. The primary cause of the decline was a Q/Q double-digit reduction in rigid OLED smartphone panel shipments. Operating income fell a little faster than revenues, down 12% Q/Q and 33% Y/Y, due to a larger contribution from lower margin LCDs. Overall, operating margins remained flat at 11% due to a smaller contribution from low margin rigid OLEDs.
LG Display is usually the first flat panel maker to release earnings each quarter, and in many ways they have been a bellweather for the industry. They always give guidance on the upcoming quarter, and historically their guidance has not always been accurate. For Q4, though, LGD’s guidance given at the end of October was spot on, and included a phrase that captured the industry dynamic in Q4, and perhaps for some time to come.
In October, LGD said that they expected that panel ASPs will diverge by company, product, and size as company specific pricing and profitability affects the price (emphasis added). As we look at the results of the first three panel makers reporting Q4 results this week, that’s exactly what we’ve seen.
Note: parts of this article appeared as a blog on DSCC’s site on Thursday, but after news broke Friday that Foxconn has decided to go forward with Gen 6, I made some edits and added the update at the end.
According to a flurry of news reports this week, Foxconn will not be building LCD panels at its complex in Wisconsin. While the company reiterated its plan to employ 13,000 workers in that state, statements by the company leave many open questions about what shape the investment will take.
DSCC has been publishing OLED and mobile LCD fab capacity, input and utilization as part of its Quarterly OLED Shipment and Fab Utilization Report for over a year. The utilization data is extremely useful for anyone assessing the health of these companies, their suppliers, the capex outlook and the mobile and OLED TV markets in general. The Quarterly OLED Shipment and Fab Utilization Report has been one of our most popular reports due to all the OLED shipment/forecast data as well as the utilization data, however, for companies just interested in the fab utilization data, it can be expensive at $7995-$8995. Thus, we are now making the fab utilization data available at a lower cost of $3495 - $3995 depending on company size. Called the Quarterly OLED and Mobile LCD and Fab Utilization Tracker, it delivers sortable fab utilization data revealing the following information by company by fab:
DSCC has released its Q4 2018 update of our Advanced TV Display Cost Report, with updates to all of the OLED and LCD cost outlines plus the first cost model for Samsung Display’s quantum dot OLED (QD OLED) product, as well as analysis detailing the cost advantages LG Display will realize in implementing Multi-Mode Mother Glass (MMG) technology.
DSCC’s Latest Smartphone Display Cost Report Adds Foldable, New Models and Quantifies Significant BOE Yield Improvements
The Q4’18 update of DSCC’s Quarterly Smartphone Display Cost Report adds the panels used in the upcoming Samsung Galaxy S10 models and the Galaxy Foldable smartphone. Foldable smartphones have the potential to dramatically change the smartphone landscape and it is critical to understand their costs and cost reduction potential to estimate their impact on smartphone prices and likelihood of success.
Revenues from the sales of OLED display panels will increase 19% in 2019 to $31 billion, according to the latest update of DSCC’s Quarterly OLED Shipment and Fab Utilization Report. OLED panel units in all applications will grow 22% to 610 million, and shipment area will grow 35% to exceed 9 million square meters.
DSCC released its latest Quarterly Display Capex and Equipment Service suite of products which includes:
Reflective LCDs have been around for a long time but have never made much of an impact on the display industry. FLEx Lighting, a US- based startup, is looking to change that with some fascinating technology that greatly improves the performance of reflective LCDs, and just might make this display technology a big part of the industry landscape in a few years.
We now have all the financial results of panel makers for Q3 2018, and we have compiled a comparison view as part of DSCC’s Quarterly Display Supply Chain Financial Health Report. The comparison highlights big discrepancies in results between some of the major players in the industry. While Q3 was in general a positive quarter for display makers, it was especially good for Samsung, and not so good for some of the smaller players.
DSCC has updated its LTPS LCD and OLED fab utilization results through November with a 1-month forecast for December. This data is compiled based on surveys of glass and materials suppliers and appears in our Quarterly OLED Shipment and Fab Utilization Report. The results are quite interesting.
The third quarter of 2018 saw a strong recovery of OLED panel shipments, with total revenue up 80% Q/Q and 45% Y/Y to $8.0 billion, according to the latest update of DSCC’s Quarterly OLED Shipment and Fab Utilization Report. The revenue increase was paced by an even more impressive 92% increase Q/Q in OLED smartphone panel revenue, which grew 43% Y/Y to $6.9 billion, as shown in the chart below.
After years of development dating back to 2012 when Samsung trademarked YOUM for its unbreakable, flexible display, Samsung finally announced its first foldable display which it trademarked on October 29 as the Infinity Flex Display at its Developer Conference on November 7th in San Francisco, CA. It did not formally announce the name, timing or price of its foldable smartphone however, which many people believe will be called the Galaxy F for foldable.
DSCC has agreed to a partnership deal with UK-based display research firm Meko, whereby DSCC will transition its weekly Display Supply Chain Monitor (DSCM) into a new publication, to be called the DSCC Weekly Review. The Weekly Review will form a successor publication to Meko’s Large Display Monitor (LDM) and Mobile Display Monitor (MDM) weekly newsletters, and we expect that the Weekly Review will come to be seen as the premier source of news and analysis in the display industry.
LG Display has had remarkable success in its OLED TV panel business for years, in all areas except one – profits. Based on new analysis in DSCC’s Quarterly Advanced TV Display Cost Report, the combination of higher prices and lower components costs have allowed LGD to turn the corner on this business and become profitable in Q3 2018, and LGD likely has a strong runway of profits in the coming quarters and years.
Search Previous Blog Posts