Samsung Display and LG Display are pursuing divergent strategies in the global foldable organic light-emitting diode (OLED) market. Samsung Display is strengthening its position in the high-value smartphone sector by capturing demand for foldable panels from both Samsung Electronics and Apple. In contrast, LG Display is focusing on mid-size IT devices such as iPads and laptops, rather than entering the foldable smartphone production market.
According to market research firm Counterpoint Research, Samsung Display's shipments of foldable smartphone panels increased by 6% year-on-year in the second quarter of this year. Its market share rose by 13.5 percentage points to 66%. Overall shipments for the first half of the year also grew by 10%, maintaining a leading market share of 51%.
Samsung Display's strength lies in securing key global customers in the foldable smartphone market. It is reportedly the exclusive supplier of panels for Apple's first foldable smartphone, in addition to its existing Galaxy Z Fold and Flip series. By capturing demand from these two major premium smartphone manufacturers, Samsung Display is positioned to benefit from the expanding foldable market.
Foldable OLEDs are more complex and costly than standard smartphone OLEDs. Samsung Display's revenue from foldable OLED panels is projected to reach $2.825 billion (approximately 3.85 trillion won) in the second half of the year, which is 4.3 times higher than the first half.
As a result, Samsung Display is expected to see significant improvements in its financial performance in the latter half of the year. Analysts estimate that its revenue will range from 17 trillion to 18 trillion won, with operating profit between 2 trillion and 3 trillion won, significantly exceeding the first half's estimated operating profit of 1.1 trillion won.
LG Display's approach differs. While it is a major supplier of OLEDs for Apple's existing iPhones, it has not yet begun mass production of foldable smartphone panels. Instead of entering the already established foldable smartphone market, LG Display aims to leverage its strengths in mid-size OLED technology to meet the demand for next-generation form factors.
Future products such as an 18.8-inch foldable iPad and large-screen foldable laptops are being considered as new demand sources. LG Display has developed tandem OLED technology, which stacks two layers of emitting material to enhance brightness, lifespan, and durability.
The mid-size OLED market is also experiencing rapid growth. Omdia forecasts that shipments of mid-size OLEDs will increase by 18.8% year-on-year to reach 38.8 million units this year, with laptop and monitor OLEDs expected to grow by 66% and 34%, respectively.
In the first quarter of this year, IT panels, including those for monitors, laptops, and tablets, accounted for 37% of LG Display's total revenue. While Samsung Display leads the foldable smartphone market by securing demand from Samsung Electronics and Apple, LG Display is expected to seek new opportunities in the rapidly growing mid-size OLED market.
One industry insider noted, "Given that Samsung Display has secured major customers in the foldable smartphone market, it will be challenging for latecomers to establish a supply chain quickly. For LG Display, responding to new form factor demands for laptops and tablets based on its competitive mid-size OLED technology may be a more realistic option."
* This article has been translated by AI.
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