Last year, Chinese display panel maker, Tianma ranked No. 1 in the Low-Temperature Polycrystalline Silicon (LTPS) Liquid Crystal Display (LCD) market share of smart phones. This is the first time that a Chinese display panel maker has taken the lead in the small- and medium- size display market.
According to data provided by IHS Markit, market research company, Tianma recorded a 22% share of the LTPS LCD panel market in 2018. It’s a huge leap of the market share from 16.8% in 2017. The share of Japan-based JDI which ranked No. 1, dropped 25.6% to 18%, and its ranking was pushed back to the second place. Third place was BOE (11%), fourth place was AUO (10%), and fifth place was Sharp (9%).
The reason why Tianma has moved up to the top is because of the Chinese major smartphone makers. Huawei's Tianma LTPS LCD panel shipments, which stood at 13% in 2015, climbed to 46% in the first half of last year. During the same period, Xiaomi expanded from 30% to 58% and Bibo from 37% to 50%. According to the Counterpoint Research's data for smartphones sales last year, Huawei shipped 205.3 million units of smartphones increased by 34% YOY, Xiaomi to 121 million units increased by 26% and Bibo to 102.8 million units increased by 3%.
Chinese makers such as Tianma, BOE and AUO have risen to the top of the LTPS LCD panel market, however the Organic Light Emitting Diodes (OLEDs) are more profitable. OLED ($ 6,430.3 million) outperformed LCD ($ 4,195.8 million) in the smartphone display market as of the third quarter of 2018. This is the second time since the fourth quarter of 2017. This result has shown as the smartphone market is stagnant, each company is implementing a premium strategy and the adoption of flexible OLEDs is increasing.
IHS Markit analyzed "the Chinese display industry is investing heavily in OLED" and “Following the increased demand for the premium smartphones, Chinese OLED panel shipment is also increasing.” According to a recent report by Display Supply Chain Consultant (DSCC), the market researcher, BOE's small- and medium- size OLED panel shipment exceeded 1 million units in every month of the fourth quarter of last year. The yield, which stood at the first digit in the beginning, is expected to exceed 40% in the first quarter of this year.
Meanwhile, the amount of LTPS LCD panel shipment was recorded 689 million units last year. It’s increased by 12% compared to 620 million units last year.