Huawei officially released its new generation flagship mobile phone mate20. It is revealed that its top version mate20 Pro uses OLED panel, and the supplier is BOE. This is a positive for BOE, which proves that its OLED panel truly achieves mass production in technology. Also caught up with the small and medium-sized OLED panel boss Samsung.
The twists and turns of mass production of OLED panels
As the largest panel manufacturer in China, BOE has become the world‘s largest supplier of LCD panels through more than ten years of hard work (the market share of the market for large-size LCD panels and small and medium-sized LCD panels for TV). The success of BOE is a model for China’s high-end manufacturing industry to grow against the trend.
For BOE, the market share in the LCD panel market is not the end. It is a new goal to catch up with the Korean giant in panel technology, and OLED panel technology is one of the goals that it is struggling to catch up with. In 2016, BOE invested RMB 46.5 billion to build the first 6-generation OLED panel production line in Chengdu. This is also the first 6-generation OLED panel production line in China, which was successfully mass-produced in October last year.
At that time, BOE said it had begun to supply OLED panels to Huawei, OPPO and vivo. However, Huawei’s mate10 Pro released in the fourth quarter of last year did not use BOE’s OLED panels, but instead adopted Samsung’s OLED panels, which seems to reflect BOE’s OLED panels. Technology and quality failed to meet Huawei’s requirements. There are many difficulties in the production technology of OLED panels. LG, the world’s largest manufacturer of large-size OLED panels, started the small and medium-sized OLED panel production line after receiving 2.7 billion US dollars in investment in July last year, but this year it did not get Apple‘s. Approved, and BOE started from zero in OLED panel technology, and it was reasonable to encounter setbacks.
Perhaps after this year’s improvement, BOE’s OLED panel has met Huawei’s requirements in terms of technology and quality. Therefore, Huawei’s flagship model mate20 Pro adopts BOE’s OLED panel. It is said that the mate20 adopting BOE OLED panel can approach the level of Samsung’s small and medium-sized OLED panel in terms of resolution and pixel density, and can reach the corresponding technical level in screen bending and dissimilar design.
BOE OLED panel put into production can enhance the competitiveness of domestic mobile phones
Nowadays, the domestic mobile phone brand has become a strong competitor in the global smart phone market. From January to September this year, the shipments of the four domestic mobile phone brands of Huami Ouwei have surpassed the sum of Samsung and Apple. Huawei has repeatedly stressed that it will catch up. Samsung and Apple are the targets, and as domestic mobile phone shipments grow and enter the high-end mobile phone market, the industry chain issue becomes the key to their further development.
One of the reasons why the high-end mobile phone market has always been owned by Apple and Samsung is that they have a strong voice in the industry chain. Among them, Samsung has the strongest industrial chain in the world, in memory chips, small and medium-sized OLEDs. Panels, CMOS, chip design and manufacturing are among the best in the world. HTC had the strength to compete with Samsung and Apple in the past, but at the crucial moment, it was constrained by Samsung’s OLED panel supply, which ultimately led to the current decline. OPPO and Huiding on the screen fingerprint identification module supply disputes also reflect the importance of the industry chain.
In the small and medium-sized OLED panel market, Samsung has a market share of more than 90%. After the iPhoneX released by Apple last year adopted OLED panels, OLED screens are becoming the trend of smart phones. It can be said that if you do not use OLED panels, you can’t call them high-end mobile phones. Samsung also relied on the huge shipments of small and medium-sized OLED panels to win the first place in the small and medium-sized panel market share. Among the domestic mobile phone brands, OPPO and vivo are the most active adopting OLED panels, but they also pay a huge price. The price of OLED panels supplied by Samsung is high, and OV has to pay a huge deposit to ensure that Samsung supplies OLED panels.
Now BOE’s OLED panel is mass-produced and shipped to Huawei. In the future, with the launch of its second small and medium-sized OLED panel production line, the production capacity of OLED panels will be steadily improved. Domestic mobile phone brands can get rid of the dependence on Samsung’s small and medium-sized OLED panels. It will help them enter the high-end mobile phone market and compete with Samsung and Apple.
BOE has not stopped here. It has long said that it wants to become an Apple OLED panel supplier. When the OLED panel production line was not put into production last year, it said that Apple has negotiated with it to supply OLED panels for Apple in the future. Now it has successfully supplied OLED panels for Huawei. After that, it may become a reality for Apple to supply OLED panels in the future. If it can become Apple’s OLED panel supplier, it will prove that it has caught up with Samsung in technology.
BOE started from the purchase of Korea‘s modern and backward LCD panel production line, gradually developed to the current scale, and entered the world-class level in technology, which proves the possibility that China’s manufacturing industry will gradually develop into high-end manufacturing industry by consolidating the low-end market. It has positive significance for China’s 2025 plan that China is actively promoting.