Flexible AMOLED display suppliers are in a competitive and evolving market, requiring strategies that address price pressures, technology advancements, and fluctuating demand.
“Flexible AMOLED prices are expected to remain stable or see only slight decline over the next two years, though seasonal price fluctuations are anticipated. In contrast to the double-digit price drops seen in 2023, prices are unlikely to decrease as sharply due to limited new production capacity in the coming year,” said Joy Guo, Principal Analyst at Omdia’s Displays practice, in a report.
Flexible AMOLED display shipments are projected to reach 631 million units in 2024, marking a 24 percent year-over-year increase, driven by significant demand in the smartphone market.
By year-end 2024, flexible AMOLED is expected to capture a 42 percent market share, surpassing a-Si LCD (37 percent) to become the top smartphone display technology.
A notable drop in average selling price (ASP) for flexible AMOLED displays — 14.3 percent in 2023 and an additional 6.7 percent in 2024 — has encouraged a shift from LCD to OLED in smartphones.
The smartphone display market is diversifying, with four main technologies: flexible AMOLED, rigid OLED (12 percent), a-Si LCD, and LTPS LCD (10 percent).
While flexible AMOLED ASPs are anticipated to decrease moderately in 2025, prices are expected to stabilize due to limited new production capacity.
Flexible AMOLED supply and demand are projected to remain balanced in 2025, although seasonal adjustments will be essential to maintain this equilibrium.
Strategies for flexible AMOLED display suppliers
# Optimize Production Costs to Manage ASP Decline
Strategy: Implement cost-reduction techniques like economies of scale, streamlined manufacturing, and automation to offset declines in average selling price (ASP). Given that flexible AMOLED ASPs are expected to stabilize with moderate decline, efficient production will help maintain profitability.
Benefit: Allows suppliers to stay competitive by meeting market demand at attractive price points while preserving margins.
# Enhance Gen8.6 OLED Production Capabilities
Strategy: Invest in Gen8.6 OLED production facilities, scheduled for release in late 2026. This upgrade will increase production efficiency and output, allowing suppliers to meet rising demand while supporting further price reductions.
Benefit: Positions suppliers to capitalize on economies of scale and capture market share as prices decline, especially as LCDs shift to OLED.
# Strengthen Strategic Partnerships with Smartphone Manufacturers
Strategy: Collaborate closely with smartphone manufacturers to align production with projected demand. Flexible AMOLED suppliers should provide custom display solutions and flexible terms to secure long-term partnerships.
Benefit: Reduces the risk of supply-demand imbalances and ensures steady order volumes, supporting balanced production and demand through 2025.
# Focus on Product Differentiation for High-End and Mid-Range Markets
Strategy: Offer distinct product features such as improved energy efficiency, higher resolution, and innovative form factors (e.g., foldable or rollable displays) to appeal to both high-end and mid-range smartphone markets.
Benefit: Differentiation helps command higher ASPs in high-margin segments, particularly in a market with increasing price competition in lower-end displays.
# Invest in R&D to Enhance Display Quality and Durability
Strategy: Prioritize R&D to improve AMOLED display performance, such as durability, flexibility, brightness, and power efficiency. Suppliers should also work to develop solutions that address common AMOLED concerns, such as burn-in.
Benefit: Enables suppliers to meet evolving consumer demands for better display quality and device longevity, making AMOLED a more attractive option across price segments.
# Leverage Seasonal Pricing Adjustments and Flexibility
Strategy: Anticipate and adjust for seasonal demand fluctuations by adapting pricing strategies and production schedules. This will help suppliers align inventory with peak and low-demand cycles.
Benefit: Helps to optimize inventory and maximize profitability during peak seasons, while preventing surplus during low-demand periods.
# Broaden Product Line to Include Rigid OLED Offerings
Strategy: Expand the product portfolio to include rigid OLEDs and collaborate with manufacturers interested in lower-cost OLED options. This diversification supports flexibility in market reach and adapts to varying customer budgets.
Benefit: Allows suppliers to address diverse smartphone segments, providing lower-cost OLED options without sacrificing the benefits of AMOLED technology.
# Expand Market Presence Beyond Smartphones
Strategy: Target additional applications for flexible AMOLED displays, such as wearables, automotive displays, and other consumer electronics. AMOLED technology’s flexibility and image quality make it ideal for various applications.
Benefit: Diversifying beyond smartphones can help suppliers reduce dependence on one segment and provide resilience against smartphone market fluctuations.
# Implement Supply Chain Resilience Measures
Strategy: Diversify suppliers of critical materials and consider localizing portions of the supply chain to reduce dependency on single sources and minimize disruptions.
Benefit: Strengthens supply chain resilience, ensuring stable production in response to market volatility or unexpected disruptions.
# Prepare for LCD Conversion Demand in 2027
Strategy: Develop a strategy to meet increased demand for OLED displays from the projected shift of LCD manufacturers to OLED by 2027. Investing in production capacity and workforce training for this expected demand surge will allow suppliers to capture market share as the industry transitions.
Benefit: Positions suppliers to lead the market as the shift from LCD to OLED technology accelerates.
These strategies enable flexible AMOLED display suppliers to not only secure market position in a growing segment but also to adapt dynamically to technological advances and market changes.
