Premium OLED TVs to Lead Market Growth

The reason Apple equipped the iPhone 8 with OLED is because of augmented reality (AR).

Smartphones from Samsung, LG, and Apple released in the second half of this year all feature OLED (Organic Light-Emitting Diode) displays. Not only the Note 8, but LG has also equipped its V series with an OLED display for the first time. With Apple also adopting OLED in the iPhone X, the adoption of OLED in smartphones is expected to become mainstream.

Shinhan Financial Investment Director So Hyun-cheol stated, “The iPhone 8 is scheduled to launch an AR-based shopping app through a strategic collaboration with IKEA. OLED is essential to implement AR with this app,” and predicted that as AR smartphones become popularized once 5G networks are commercialized, most of the 1.9 billion smartphones sold in 2024 will adopt OLED.

With dual cameras becoming standard in smartphones and high resolution and pixel counts becoming essential requirements for mid-range and budget models, the transition from LCD to OLED has become an inevitable choice. Chinese companies Oppo and Vivo have also seen a surge in sales after releasing smartphones equipped with OLED displays. Recently, Oppo launched a smartphone featuring an FHD OLED, and Xiaomi is planning to release a rigid OLED smartphone. Consequently, demand for OLEDs from Chinese smartphone manufacturers is expected to grow following the launch of the iPhone.

Director So stated, “When comparing the cost of 5.5-inch QHD displays, the total cost of LTPS LCD and OLED is similar. “Yield and cost improvements are also continuing for flexible OLEDs,” he explained. “Samsung Electronics has announced that it will release a foldable smartphone next year. If that happens, it will become a new growth engine for the OLED industry.”



OLED is also expected to show strength in the TV market. Sony, which had been showing weakness for some time, saw its TV sales increase by 16.9% in the second quarter after launching OLED TVs this year. Sony’s TV business revived as it began receiving IPS LCD TV panels from LG Display, and the company plans to strengthen its premium OLED TV business by reinforcing strategic cooperation.

As LG Electronics recorded its highest operating profit margin in 2016 with its 65-inch OLED TV, a shift in the structure of the TV industry began. With mobile usage time increasing compared to TVs, sales of LCD TVs are gradually declining. In contrast, the growth trend of premium OLED TVs is expected to continue.

However, with the popularization of smartphones causing mobile usage time to surpass TV usage time, changes in the structure of the TV industry are expected. In this regard, Director So explained, "In the future, it will be important how TV relates to content and what kind of content it provides."

Sony is expected to strengthen its market dominance by providing total solutions including game consoles, software, and VR, as well as launching hardcore games on OLED TVs. The usage rate of Sony's own console for gaming was found to be 19%, while the usage rate for other purposes via online channels was 81%. Director So said, “Sony is turning the PS4 game console into a gateway to connect Wi-Fi and utilize it for various business opportunities.”

Meanwhile, regarding China's rapid rise, Director So predicted, "When China started LCDs, they brought in a large number of technical personnel from abroad. In the case of OLEDs, since Samsung Electronics was the first to successfully mass-produce them, the majority of technical personnel are located domestically. Consequently, the supply of engineers will not be smooth," adding that "future investments by Samsung Electronics and LG Display will be focused on OLEDs."