Chinese display manufacturers are rapidly expanding their influence in the organic light-emitting diode (OLED) market, supported by domestic smartphone companies like Huawei and Xiaomi. As a result, the position of South Korean firms such as Samsung Display in the Chinese smartphone supply chain is shrinking, while their dependence on Apple is becoming increasingly pronounced.
According to market research firm UbiResearch, Samsung Display's cumulative OLED shipments to Xiaomi for the first three quarters of this year are expected to reach 6.8 million units, a 46.9% decrease from 12.8 million units during the same period last year. Notably, while flexible OLEDs accounted for about 5% of Samsung Display's shipments to Xiaomi last year, this year, nearly all shipments consist of rigid OLEDs. This shift has occurred as Chinese panel makers have expanded their supply of flexible OLEDs for Xiaomi's flagship and mid-range smartphones, narrowing Samsung Display's focus to budget-friendly rigid products.
The influence of Chinese panel makers is also evident in the foldable OLED segment. Shipments of foldable OLEDs from Chinese manufacturers increased from approximately 1.3 million units in 2021 to over 10 million units last year. BOE supplies foldable OLEDs to Huawei, Oppo, and Vivo, while TCL China Star (CSOT) provides them to Motorola, Xiaomi, and Honor. With Huawei and Xiaomi recently unveiling new foldable smartphones, Chinese companies are strengthening their foothold in the premium market, creating a stable demand base for local panel makers.
The penetration of Chinese panel makers into the OLED market is expected to accelerate. UbiResearch forecasts that the combined global market share of four Chinese panel companies—BOE, CSOT, Visionox, and Tianma—will exceed 50% for the first time next year. While Samsung Display's market share is projected to decline from 61.9% this year to 41% by 2030, BOE's share is expected to rise from 25.5% to 32.8% during the same period.
Despite the growing influence of domestic panel makers in the Chinese smartphone supply chain, South Korean companies still dominate the global premium market. In the first quarter of this year, Samsung Display supplied 59% of OLEDs for iPhones, while LG Display accounted for 27%, together making up 86% of the total. BOE's share was 14%. Samsung Display is also expected to exclusively supply OLEDs for Apple's first foldable iPhone.
However, a concerning trend is emerging as the South Korean display industry becomes increasingly concentrated on a single client, Apple. Last year, approximately 90% of Samsung Display's smartphone OLED shipments were directed to Samsung Electronics and Apple. This year, the company is expanding its collaboration with Apple by supplying not only the foldable iPhone but also OLED panels for the iPad Mini and MacBook Pro.
LG Display is also experiencing a similar trend. According to the company's business report, revenue from its largest customer reached 14.8359 trillion won, accounting for 57.5% of total revenue last year. The revenue share from its largest customer has increased from 44.9% in 2022 to 52.1% in 2023, and then to 53.7% in 2024, soaring to 57% last year. Although the customer is not publicly identified, industry insiders believe it to be Apple.
While the Apple-centric supply structure may provide short-term stability with high-value orders, experts warn that long-term customer diversification is necessary. The performance and utilization rates of domestic panel manufacturers could be heavily influenced by the product strategies and sales performance of a single client, especially as Chinese companies like BOE are also expanding their entry into Apple's supply chain.
* This article has been translated by AI.
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