South Korea's OLED technology has once again widened the gap with China, demonstrating a significant technological advantage in high-end products.

South Korean display panel manufacturers have regained a significant share of the global OLED (Organic Light Emitting Diode) market for smartphones this year, further widening the gap with Chinese companies. With the growth in high-end smartphone sales, Samsung Display and LG Display, leading in technology, have seen revenue increases in tandem.

Data released on the 27th by market research firm Omdia shows that in the first three quarters of this year, South Korean companies held a 63.4% market share in the small-to-medium-sized OLED market for smartphones (including smartwatches) by revenue, an increase of 1.3 percentage points compared to the same period last year. Samsung Display and LG Display held market shares of 45% and 18.3%, respectively.

Driven by improved performance, the market gap between South Korean and Chinese companies has widened again. In the first three quarters of 2023, the market share gap between South Korean and Chinese companies was 43.2 percentage points, narrowing to 23.8 percentage points last year, but widening again to 27 percentage points this year. Currently, Chinese companies producing OLED panels include BOE, Tianma Microelectronics, Visionox, CSOT, Hehui Optoelectronics, and Truly.

Chinese panel manufacturers are gradually expanding their market presence, primarily focusing on low-to-mid-range products. In terms of shipments, Chinese companies outsold their South Korean counterparts by 7.7% in the first three quarters of this year. However, while shipments increased, sales revenue for Chinese companies remained stagnant, indicating that Chinese panel manufacturers primarily target the low-price market due to lower unit prices.

In contrast, Samsung Display and LG Display focused on high-tech, high-value-added products, especially after officially supplying panels for Apple's iPhone 17 series in the third quarter, resulting in significant increases in both shipment volume and sales revenue. Notably, LG Display currently supplies all its smartphone OLED panels to Apple.

Apple has adopted LTPO (Low-Temperature Polycrystalline Oxide) OLEDs, previously used only in high-end models, across its entire product line starting with the iPhone 17 series. BOE (Beijing Oriental Electronics) failed to meet Apple's technical standards, significantly increasing Apple's reliance on Samsung and LG Display.

Data shows that in the third quarter of this year, South Korean companies held a 67.6% market share by revenue, far exceeding the 32.2% held by Chinese companies. LG Display's share increased to 20.3%, a 5.4 percentage point increase from the previous quarter, primarily due to increased supply of smartwatch panels. Samsung Display's market share also rose from 45% to 47.3%, and in the third quarter, the combined shipments of the two companies were almost equal to the combined shipments of all Chinese companies.

While China has surpassed South Korea in OLED production capacity, a technological gap still exists. Recently, Samsung Display emerged victorious in its OLED patent dispute with BOE in the United States, with BOE agreeing to pay patent royalties and Samsung Display withdrawing its lawsuit from the U.S. International Trade Commission (ITC).

Furthermore, Samsung Display and LG Display have also performed strongly in the OLED market for IT applications such as tablets and laptops. Samsung Display plans to build an 8.6-generation OLED mass production system in Asan, South Chungcheong Province, next year, primarily producing panels for tablets and laptops. The higher unit price of small- and medium-sized panels compared to large-sized panels will help improve profitability.

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