According to a report from Taiwan’s TechNews, despite running at a loss in the first half of the year, BOE believes that its target of shipping 120 million OLED panels still has a chance of being achieved. As the industry enters the traditional off-season in the fourth quarter, strict adherence to production capacity by panel manufacturers is expected to help stabilize panel pricing.

BOE mentioned that the price increases witnessed over the past few months were primarily driven by panel manufacturers, who maintained their bargaining power in price negotiations. This upward pricing trend continued into the third quarter. However, as the industry enters the off-season in the fourth quarter, some price fluctuations may occur. Nevertheless, panel manufacturers are expected to adjust their production capacity downward, making any potential price reductions manageable.

Furthermore, next year holds a brighter outlook for panel demand, with the average TV size projected to increase to 51.6 inches, compared to 50.2 inches in 2023, driving an 8% annual growth in TV demand for the coming year, compared to this year’s 3%. Replacement cycles are expected to contribute to overall demand for laptops and monitors next year.

In the first half of this year, BOE shipped approximately 50 million flexible OLED panels, marking a 76% year-on-year increase. The largest customer accounted for 43% of the total shipments. BOE believes there is still an opportunity to achieve the annual target of shipping 120 million panels. While the OLED business experienced an overall loss in the first half of this year due to increased capacity from second-tier suppliers and intensified entry-level competition, recent months have seen signs of a bottoming-out rebound in prices. Coupled with seasonal order increases, profitability is expected to continue to improve next year.

(Photo credit: BOE)

According to a report by TechNews, it’s widely known that Apple has been quietly working on a not-so-secretive project known as “Project Titan,” which is centered around the development of the Apple Car. As per Autoevolution, the Apple Car might become the first vehicle to feature a Micro LED display. At the same time, TrendForce’s latest research indicates that Micro LED displays are set to become widely adopted in the automotive industry during the latter half of this century.

However, the exact unveiling date of the Apple Car remains unconfirmed. The most recent speculation suggests that this electric vehicle model could be launched in 2025 or 2026.

Apple has long aimed to incorporate Micro LED technology into its products. Initially, it was thought that the Apple Watch would be the first Apple product to adopt a Micro LED display. However, due to supply chain adjustments, the transition of the Apple Watch from OLED to Micro LED might be delayed until 2026, while Apple initially planned to introduce Micro LED technology to its watches by 2025.

Although the timeline for Micro LED introduction in the Apple Watch has been pushed to 2026, that year might witness widespread Micro LED adoption across various Apple products, including headsets, smartphones, and automotive applications.

Once Micro LED technology finds its way into the Apple Car, it’s expected to trigger emulation within the automotive industry, leading to the widespread integration of Micro LED technology in future vehicle models. TrendForce suggests that car manufacturers in Europe, America, and Japan show considerable enthusiasm for adopting Micro LED.

But what benefits does Micro LED bring to automotive applications? It’s understood that Micro LED can reduce power consumption, enhance brightness, and offer reliability. Considering the significant performance improvements and the push toward electric vehicles, once Micro LED’s benefits are demonstrated in automotive contexts, car manufacturers are expected to embrace it on a large scale.

However, the exact launch date of the Apple Car remains uncertain. While there were earlier speculations of a possible 2025 release, insiders now suggest Apple has pushed the launch to 2026. Though Apple initially had ambitious goals for Project Titan, the first Apple Car might adopt a more traditional design than initially envisioned, including features like a steering wheel and pedals.

Rumors suggest Apple’s ultimate goal for the Apple Car is to transform the cabin into a living room-like environment, with the aim of removing the steering wheel and pedals to achieve full self-driving capabilities. However, the initial Apple Car might showcase limited autonomous driving features and share design similarities with existing Tesla models.

(Photo credit: AUO)

August Sees TV Demand Fluctuations

Entering August, the TV brand demands echo with noise. Despite 7% Q3 growth, a noticeable dip from last month’s projections appears. Yet, panel makers hold steady, adjusting production and raising TV panel prices due to unclear trends for larger sizes. Expect strong TV panel prices in August, up by USD 2~8. Notably, 75-inch panels could surge around USD 8.

Monitor Panels in August: Steady Outlook

In August, as consumer model demands saturate and commercial model needs to stay low, brands approach price hikes cautiously. Despite this, panel manufacturers aim to increase prices. Expect minor upticks in monitor panel prices for August. Open Cell panels could see a convergence of price increases, around USD 0.1. Projections include USD 0.1 hikes for 21.5-inch, 23.8-inch, and 27-inch panels.

Laptop Panel in August: Cautious Price Adjustments

Looking at August laptop panel prices, constrained growth in Q3 demand from top-tier brands leads to a cautious stance on broad price increases. Most brands accept minor adjustments for low-end HD TN models. Meanwhile, specific manufacturers slightly raise prices for mid-to-high-end FHD IPS models to select customers, while mainstream prices remain restrained. Anticipate a USD 0.1 uptick for HD TN models and stable prices for FHD IPS models in August.

Based on a recent analysis by TrendForce, LG Display is encountering a challenge with its supply of 6.7-inch panels and chassis for the iPhone 15 Pro Max. The issue revolves around tolerance, leading to the development of a growing dark spot (GDS) once the components are assembled. Unfortunately, this problem has hindered the successful passage of quality verification tests. Consequently, LGD’s production timeline is anticipated to face a one-month delay, awaiting the resumption of shipments following the completion of revalidation later this month. To manage the reduced panel supply during this interim period, Samsung Display (SDC) will step in and provide supplementary support.

From the standpoint of downstream assembly facilities, the adjustments in supply have the potential to impact production operations in Zhengzhou for approximately two weeks. It’s projected that by ramping up production subsequently, these effects can be mitigated.

On a different note, BOE has successfully achieved its goal for this year by participating in the development of panels for both the iPhone 15 and 15 Plus. However, owing to recent quality concerns necessitating mask adjustments, they might encounter a significant decrease in shipments. Simultaneously, since SDC is a key supplier for these two new models as well, they will step up to fill the void created by BOE’s supply shortfall.

Taking a historical perspective on BOE’s involvement in supplying iPhone panels, their journey began with the iPhone 12, providing components for repairs, and subsequently transitioning into regular supply for the iPhone 13. Their prowess in LTPS and OLED technology has been acknowledged. However, with the introduction of the iPhone 15 and 15 Plus models, which incorporate the Dynamic Island design featuring a center-hole punch, the demands placed on the panels have become more stringent. The alteration in mask design is likely a pivotal factor that requires additional time for BOE to optimize panel yield and quality.

TrendForce underscores that the issue pertaining to panel quality only marginally affects the overarching shipping schedule for the iPhone 15 series. Its main consequence lies in the reshuffling of panel suppliers, while SDC continues to assert its dominance as the primary supplier of new model iPhone panels this year, accounting for nearly 70% of the market share.

According to a report from Ijiwei, a China-based media, industry insiders have revealed that Taiwanese display driver IC (DDI) suppliers are considering shifting their chip manufacturing to China due to cost considerations, as the prices offered by chip foundries there are significantly lower than those in Taiwan.

Almost all DDI suppliers are feeling substantial pressure to reduce the prices of display driver chips in the latter half of 2023. Industry sources state that while the touch and display driver integration (TDDI) chips for smartphone screens have nearly reached cost parity, the prolonged slump in the smartphone market has led display panel customers to shift the pressure upstream along the supply chain.

The downward pricing pressure on display driver chips isn’t confined to the smartphone sector alone. Medium and large panel customers in segments like TVs and automotive displays are also requesting more substantial discounts from DDI manufacturers. However, the pressure from these sectors is somewhat less pronounced than that from the smartphone sector.

(Photo credit: Transsion)