Blog from August 2022

Financial

Flat Panel Display Revenues Falling 20% in 2022, but Revenues Will Recover to $152 Billion in 2026

August 1, 2022

After a revenue spike in 2021 spurred by pandemic-fed demand and rising prices, flat panel display revenues are returning to earth in 2022 with a decline of 20%. Revenues are expected to return to growth in the coming years as displays remain a critical part of the modern world, and will grow to $152B in 2026, according to DSCC’s latest update to the Quarterly Flat Panel Display Forecast Report, released last week.
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TV

LCD TV Panel Prices Headed for One “L” of a Recovery in Q4

August 1, 2022

LCD TV panel prices have reached all-time lows but they continue to decline, and although the pace of decline is slowing in the third quarter, we now forecast that the industry will have an “L-shaped” recovery in the fourth quarter. In other words, no recovery at all until 2023. The ‘perfect storm’ of a continued oversupply, near-universally weak demand and excessive inventory throughout the supply chain has combined, and every screen size of TV panel has reached an all-time low price. Although fab utilization has slowed sharply in July, we do not see any signal to suggest that prices can increase any time soon.
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Display Equipment

DSCC Updates Display Equipment Spending Forecast – Higher Tandem FMM VTE Prices Help to Minimize Drop

August 8, 2022

In the latest issue of DSCC’s Quarterly Display Capex and Equipment Market Report, total LCD and OLED equipment spending remained relatively flat on a move-in basis despite a number of delays and cancellations. These fab schedule changes were mostly offset by higher spending for G8.5-G8.7 FMM VTE systems. 2020 -2025 spending fell just 0.2% vs. last quarter to $71.2B, while fine metal mask vacuum thermal evaporation (FMM VTE) spending rose from 10% to 12% of 2021-2025 spending, rising 18% from our last issue and overtaking exposure as the leading equipment segment over this period. The higher spend on FMM VTE tools is a result of a shift to larger substrates, full G8.5 and ½ G8.6-G8.7, as well as tandem stack adoption which boosts efficiency, brightness and lifetime and improves the OLED outlook in IT markets. Market leader Canon Tokki is a significant beneficiary of the higher tandem FMM VTE prices. By technology vs. last quarter from 2020-2025, our LCD outlook was reduced by 1% while our OLED outlook was increased by 1%.
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LCD Oversupply Will Persist Through 2023

August 8, 2022

The current oversupply in the flat panel display industry will persist throughout the full year 2023 and will slowly correct thereafter, according to the latest update of DSCC’s Quarterly FPD Supply/Demand Report, updated last week. We covered the demand portion of this report in an article last week, and this week we will describe our supply forecast and the resulting supply/demand balance.
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OLED

OLED Panel Revenues Increase 12% Y/Y in Q2’22

August 15, 2022

As revealed in DSCC’s latest release of the OLED Shipment Report – Flash Edition, OLED panel revenues increased 12% Y/Y on 3% Y/Y unit declines as a result of form factor mix changes for smartphones and Y/Y growth for automotive, game, notebook PCs, monitors, tablets and AR/VR in Q2’22.
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Financial

Glassmakers Shrug Off Display Downturn in Q2

August 15, 2022

Two weeks ago, we covered Corning’s strong Q2 earnings release, and here we will cover its two Japanese competitors, NEG and AGC, and provide a comparison. All three glassmakers saw the impact of the slowdown of panel maker utilization in the second quarter, but all three showed robust corporate results, nevertheless.
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TV

TV Slowdown Hits TCL Profits in 1H’22 and Brand Comparison

August 22, 2022

TCL Electronics issued its 2022 Interim Report last week covering the first half of the year, reporting a sharp decrease in net profits on a modest decrease in revenues. The slowdown in the global TV market led to a double-digit decrease in revenues from its TV business. TCL continues to evolve from a TV-centric contract manufacturer to a global consumer electronics brand, but TVs remain the dominant source of revenues.
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Foldable

Latest Outlook for Samsung Z Flip 4/Fold 4 Production and Ramp, Korean Pre-Orders

August 29, 2022

Last week, Samsung announced that they received pre-orders amounting to 970K units in the first seven days for the Z Flip 4 and Z Fold 4. We see production of Korean models at a higher figure than this through August so it shouldn’t lead to extended delivery times. Samsung has ambitious plans for the Flip 4 and Fold 4, which you can see in comparison to the Flip 3 and Fold 3.
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Mobile

SDC Dominating iPhone 14 Series Launch with >80% Share

August 29, 2022

DSCC is now tracking all flexible OLED panel shipments by brand, model and panel supplier on a monthly basis. For the iPhone 14, which will be launched at the “Far Out” launch event on September 7th with the invite shown below, panel shipments started in June. As indicated, shipments jumped from 1.8M in June to 5.35M in July, over 10M in August and are expected to be over 16.5M in September. Cumulative panel shipments are over 34M.
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