5G mobile phone panel battle into the heat

5g mobile phone cover plate "main position" controversy has entered a white hot. This year's and next year's meetings will be a critical period for the centralized introduction of 3D curved glass into the market of medium and high-level smart phones. At present, the main factor for the disturbance of OLED demand is the effective capacity. The OLED market is in a rapid growth period, and its application market is mainly to replace LCD. According to Zhang Zhongmou, founder of TSMC, in this high-tech, asset heavy and long-term competitive industry, only those enterprises that have achieved leading positions in technology, capital and management can maintain long-term competitiveness. Looking at the domestic panel display enterprises, the technology iterative guidance industry is expanding rapidly. In the 5g commercial era, the panel industry C position may usher in a reshuffle.

The key period of curved glass import into high-level mobile phones

Recently, some media exposed the rendering of Huawei's Nova 65g version. It can be seen from the rendering that Huawei's Nova 65g version may adopt a glass gradient rear panel design.

For the middle and high-end 5g mobile phones, the price of 3D curved glass cover plate has reached the price range acceptable to mobile phone manufacturers. It is expected that the next year will see a wave of changes. A large number of middle and high-end 5g smart opportunities will give priority to the configuration of 3D curved glass cover plate, and even make some innovation on the original basis, such as enlarging the arc of 3D glass to become the so-called 3.25d or 3.5D.

The head of a panel company predicts that this year and next year will be a critical period for the centralized introduction of 3D curved glass into the middle and high-level smart phone market, and manufacturers in the field of 3D curved glass cover will not miss this excellent opportunity to digest inventory and boost sales. This wave of 5g mobile phones will, in turn, drive the 3D curved glass cover plate market to speed up to a lower price range, so as to further penetrate the low-end mobile phone market.

In recent years, with the production expansion of global high generation line capacity, the periodic fluctuation of panel industry has been intensified. 2018 and 2019 are the peak periods of panel capacity centralized release, and the supply-demand relationship fluctuates irregularly and continuously with the change of panel plant strategy (such as closing the plant to change production, releasing new capacity, preparing goods in light and peak seasons, adjusting product structure, etc.).

The panel price drop of more than two years in a row has brought the global panel industry into the winter. This cold and particularly long industry downturn may be doomed from the moment when China's display panel manufacturers surpassed South Korea and Taiwan for the first time in 2017 and won the global voice.

OLED technology disturbs panel Market

As Zhang Zhongmou, founder of TSMC, put it, in this high-tech, asset-intensive and long-term competitive industry, only those enterprises that have achieved leading positions in technology, capital and management can maintain long-term competitiveness.

Although unable to escape the impact of the overall industry downturn, TCL Huaxing, Tianma and BOE have declined their net profits to varying degrees in the announced 2019 half year report, but they have kept the net interest rate positive step by step, which is quite different from the pure operating losses of Korean and Taiwan players.

LG display, on the other hand, is still at a loss in the third quarter of fy19f. LG display's revenue in the third quarter was 5.8217 trillion won, while QoQ rose 9%. The operating loss was won 436.7 billion, mainly due to the continuous decline of LCD panel price and the adjustment of utilization ratio of large LCD panel plants. Operating profit margin is - 8%, EBITDA profit margin is 11%, and net loss is KRW 442.2 billion.

As the third generation display technology, the market has a strong demand for OLED. According to IHS data, the global OLED market reached US $25 billion in 2018, up 10% year on year. From 2019 to 2021, the compound growth rate of global OLED output value is expected to be about 17%, and the output value of OLED panel is expected to reach 40 billion US dollars in 2021.

Fan Boyu, Research Associate of WitsView optoelectronic business division under Jibang, said that in response to the industry headwinds, manufacturers in mainland China and South Korea have different practices, but they all aim at high-end products. It is expected that the market share of OLED panel will increase rapidly. Driven by the demand of electric competition and 5g, high-end display panel will become the next competitive field for panel manufacturers.

At present, the main factor to disturb OLED demand is effective capacity. OLED market is in a rapid growth period, and its application market is mainly to replace LCD.

According to the Research Institute of China Merchants Bank, the smartphone market was weak in the first half of 2019, which made the smartphone panel market significantly lower year on year. According to Qunzhi consulting, in the first half of 2019, the global smartphone panel shipment volume was about 840 million pieces, down about 5.2% year on year. In the first half of 2019, the global OLED panel shipment of smart phones was about 220 million pieces, accounting for about 26% of the overall smart phone panel market, with a year-on-year growth of 18.6%. It is estimated that the annual shipment volume is about 490 million pieces.

Technology iteration leads the industry to expand rapidly

Throughout the domestic panel shows that the industry is expanding rapidly under the guidance of technology iteration. Taking Huaxing photoelectric as an example, the company's operation efficiency has been concerned by the industry since it was put into production. In the first quarter of this year, the panel industry is in a low business cycle, and Huaxing optoelectronics still maintains a stable growth rate, achieving an operating revenue of 7.25 billion yuan and a net profit of 683 million yuan, an increase of 35.2% month on month compared with the fourth quarter of last year. It is the only panel enterprise in the industry that has maintained a profit every year since it was put into operation.

In addition, BOE has always been the largest panel company in the world. It has acquired a backward LCD panel production line in South Korea long ago, from which it has studied and acquired panel technology. Later, it has embarked on the road of producing and launching LCD panel. In 2009, it began to set up a panel production line. After a long time of continuous exploration, it has now caught up with many enterprises in Japan and South Korea.

BOE is transforming from TV picture tube to LCD production line, while Shenzhen Tianma is coming from another line. The first Shenzhen Tianma is to make CNC display screen. All roads lead to Rome. However, the starting route is different. Compared with BOE, shentianma prefers small screen. The company's performance changes are also surprisingly consistent with BOE's.

However, Shenzhen Tianma constantly improves its technical strength through research and development. Huawei's new perforated screen is very amazing. It is Shenzhen Tianma that uses the screen.