October 13, 2017 12:26 am JST

OLED panel prices to start falling in 2019: report

Capacity expansion expected to surpass growth in demand

TOKYO -- The price of small and midsize OLED panels used in smartphones will start decreasing in 2019 as production grows, according to a report by the U.S.-based Display Supply Chain Consultants.

Many smartphone makers are switching from liquid crystal displays to the new screens, particularly for their higher-end products. Apple is using OLEDs for the first time in its iPhone X, which goes on sale next month, and Chinese competitors are following suit. OLED plants around the world are expected to continue operating at around 90% of capacity this year and in 2018.

But output capacity is expected to grow dramatically in China and South Korea in 2019 as manufacturers build and expand their facilities, lowering worldwide utilization to 84%. In addition to greater supply, "more shipments geared toward medium-price-range smartphones will help lower prices," said Yoshio Tamura, president of Asian Operations at DSCC.

(Nikkei)

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