Era of OLED Panels
Flexible OLED panels are being seen with increasing frequency, led by the Galaxy S6 Edge and smart watches supplied by a number of manufacturers. According to market research firm IHS, the flexible OLED panel market is expected to show nine-fold year-on-year growth this year.
[[{"fid":"11418","view_mode":"body_image_right","fields":{"format":"body_image_right","field_file_image_alt_text[und][0][value]":"The flexible OLED market size is increasing.","field_file_image_title_text[und][0][value]":""},"type":"media","attributes":{"height":330,"width":550,"class":"media-element file-body-image-right"},"link_text":null}]]At present, only Samsung and LG are producing small and flexible OLED display panels. They are currently trying to seek out the optimal timing of additional investment and production increases, as Apple is planning to procure the panels for its Apple Watches from various sources instead of LG Display, which has been the sole supplier.
Market research firm Strategy Analytics recently predicted that a total of 28.1 million smart watches would be sold around the world this year to show a 510 percent from a year earlier, and the Apple Watches would take up 54.8 percent of the sell-through.
Both LG and Samsung have yet to deal with the high manufacturing costs. According to IHS, the production cost for the 1.5 in flexible OLED panel used in the Apple Watch is estimated at US$27.41. Meanwhile, a 4.5 in full-HD LCD panel has a selling price of US$25 as of now.
Another challenge is the low yield resulting from the complex manufacturing processes. “Flexible OLED panels entail a number of difficult processes, including the use of a thin film instead of glass as a sealing material, and this has affected the yield,” Samsung Display explained.