Samsung Might Have Lost Its Smartphone Market Share, but It’s Raking in the Cash Thanks to OLED Screen Sales
Samsung’s smartphones have always been known for their aesthetics and part of the appeal is because of the in-house OLED panels. The South Korean conglomerate has essentially cornered the market and even arch rivals like Apple get their displays from Samsung. According to a new IHS Markit report, the company dominated the OLED market in the third quarter of the year as well, which should provide respite from the fact that its smartphone unit isn’t doing so well.
Samsung Has Accumulated 93 Percent of the Smartphone OLED Market Share, as It Hopes Galaxy S10 to Revive Its Mobile Division
According to the report, more than 61 percent of the smartphones shipped globally in the last quarter sported OLED panels. The display unit of Samsung made a whopping 93.3 percent of the OLED displays sold in the world for the July-September quarter. In terms of revenue, OLED displays accounted for $6.6 billion of the $10.7 billion in revenue earned through smartphone display sales.
On the other hand, the popularity of LCD screens continues to decrease, even though some manufacturers still stick to them thanks to their affordability. Compared to last year, when LCDs accounted for 56.2 percent of the overall revenue, their market share reduced to 38.9 percent in the third quarter of 2018. Only a handful of premium devices come with LCD panels these days such as the LG G7 ThinQ and iPhone XR, and most LCD manufacturers are now diverting resources to OLEDs. According to the IHS Markit report, Samsung also dominates the LCD market.
As a whole, Samsung makes nearly 57.8 percent of the smartphone displays, followed by BOE and Tianma, which only have a market share of 7.9 percent and 7.7 percent respectively. Samsung’s dominance is expected to increase going forward, as the company also has a monopolistic status in the flexible OLED display market as well as it had a 94.2 percent market share in Q3 2018.
The Korean giant will most likely continue to supply Apple with a major chunk of OLED screens in 2019, and if you want to know more about the tech giant, you can check out our related coverage below.
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Source: The Investor