According to South Korean media reports, following the successful OLEDization of mobile phone screens, Samsung is preparing to gradually phase out flat-panel LCD screens in the next step. The flat-panel product line will eventually be fully converted to produce OLED panels.
Samsung panel factory SDI is preparing to start reducing the supply of flat-panel LCD panels, and instead, OLED panel output will increase. Since January this year, SDI has actively increased the production of flat panel and laptop OLED panels, from 20-25 million in the second half of 2016 to 30 million.
Including SDI, LG Display and Sharp are all Apple iPad panel suppliers. In the case of SDI production reduction, Apple may seek other suppliers to help fill capacity gaps. SDI is expected to supply 600,000 flat-panel panels to Apple in the first quarter of this year, and market research agency IHS Market estimates that the supply of SDI in the second half of the year will be further reduced to 300,000-400,000.
Samsung will launch tablets and laptops equipped with OLED screens this year. According to rumors, Apple is also considering whether to follow up, and is currently doing OLED panel quality certification internally, as well as evaluating the benefits of iPad screen changes. From this perspective, it seems that Samsung has reduced its LCD flat panel production, and it seems that it has also forced Apple to upgrade its flat screen.