Display revived due to the explosion in notebook demand Samsung targets OLED, LG targets LCD

Input 2021.02.07 06:00 | Revision 2021.02.07 06:24

Laptops that were growing negatively every year, drivers revived with Corona 19
The importance of the display on the screen is growing
Notebook OLED Samsung dominates… Over 90% worldwide
LGD judges LCD’s flagship “Immature OLED market” for the time being

The increase in telecommuting and remote classes due to the novel coronavirus infection (Corona 19) has succeeded in reviving the dying demand for laptops. The sales volume of laptops, which has continued to grow every year, has increased since they were pushed by smartphones and tablet PCs.

This trend is expected to continue this year as well. The demand for displays installed in information technology (IT) devices such as notebook computers is also expected to increase, but the strategies of Korean companies that supply display panels appear to be somewhat mixed.

According to counterpoint research, a market research firm on the 7th, a total of 173 million laptops sold worldwide last year is expected to reach a record high since 2011. It has increased by 9% from the previous year, and sales are also reaching $132 billion (about 148 trillion won).

The notebook market peaked in 2011, and its growth began to slow down, driven by smartphones and tablet PCs. Each year, it showed negative growth or a low growth rate of 1%. It is true that the personal market was almost on the verge of collapse, and has survived by corporate demand. As the durability of notebooks increases due to technological advances, there is a tendency that demand decreases due to longer replacement cycles.

However, an unexpected reversal occurred last year due to Corona 19. As telecommuting increases and online learning increases, the demand for personal laptops optimized for the task has increased. This trend is expected to continue this year. It is not the same growth last year, but it is expected to sell 175 million units this year and 177 million units next year.

Display companies are also busy with increasing demand for notebook computers. This is because the more the sales volume increases, the more panels supply. The display, which has to display various work contents, is recognized as an important device in a notebook as a central processing unit (CPU) or storage medium (SSD, HDD, etc.).

In the notebook market, interest in organic light emitting diode (OLED) displays is increasing recently. Although the share of OLED panels for notebooks in the total market is around 1%, leading companies that dominate the notebook market are showing high-end notebooks using OLED panels one after another. It is said that market expansion is a matter of time.

Lenovo, which has the largest share of the global notebook market, is increasing the proportion of OLED panels used in its major products such as’Thinkpad’. Second place HP is also increasing its OLED panel-equipped products recently. Asus released two types of 2-in-1 notebook’Zenbook Flip’ that adopted OLED panel in December of last year, while introducing additional new products.

Samsung Display is in charge of supplying OLED panels for global laptops. It is similar to that of LG Display dominating the TV OLED panel market. It is known that more than 90% of the market is occupied by Samsung Display.

With the full bloom of OLED notebooks, Samsung Display plans to release 10 types of OLED panels for notebooks in various sizes from 13.3 inches to 16 inches this year. A company official said, “Last year, the supply of OLED panels for notebooks is estimated to have grown more than five times from the previous year.”

On the other hand, LG Display is focusing more on liquid crystal display (LCD). This is because, unlike LCDs for TVs, where profits are not large, in IT fields such as laptops, the profits generated by LCDs are significant. In particular, it ranks first in the global market share in high-definition panels such as IPS (wide viewing angle) and QHD (quad HD).

Last year, LG Display’s laptop LCD panel sales were 3.29 trillion won, an increase of 34.4% from 2,476 trillion won last year. During the same period, sales of LCD panels for TVs decreased by more than 30%. In terms of the growth rate alone, it is significantly ahead of the 15.8% growth rate recorded by the TV OLED panel, which LG Display is focusing on. LG Display plans to change the TV LCD production line, which is scheduled to withdraw, into an IT (monitor, laptop, tablet, etc.) LCD panel production line.

However, LG Display is also planning to switch to OLED at an appropriate time. It has already introduced 48-inch OLED for monitors. However, the reality itself is not easy. Like OLED panels for smartphones, Samsung Display has preoccupied this market, and LG Electronics, one of the largest customers, is not currently planning to launch OLED notebooks.

An industry insider said, “The industry view that LG Display’s small and medium-sized OLEDs used in PC monitors and notebooks have not yet secured sufficient price competitiveness.” “Price competitiveness is a very important factor in securing customers. It’s a problem.”

This year, LG Electronics is releasing PC monitor Ultrafine All-Red Pro in 34-inch size. However, LG Display’s OLED panel will not be used for this monitor. Instead, Japanese JOLED panels are used. The industry seems to have had the competitiveness of JOLED panels in terms of price.

An official from LG Display said, “Currently, the OLED panel for notebooks is not in full-scale product shipment due to the lack of demand from customers. I think that the market competitiveness (LG Display) is sufficient to catch up with the OLED notebook market. Said.