Samsung's smartphones might be slumping, but its OLED displays are bigger than ever

Samsung's smartphones might be slumping, but its OLED displays are bigger than ever
All these phones use Samsung-made OLED screens

Samsung’s market-leading smartphones are not selling as well as they used to, dropping more than 13 percentage points year-on-year in Q3 as flagship designs have become a bit repetitive and Galaxy mid-rangers are simply not good enough for their price points.

While it remains unclear if a redesigned high-end lineup and completely overhauled low to mid-end portfolio will help Samsung bounce back to growth next year, the company’s finances are doing just fine.

Memory chips, TVs, and OLED panels are the primary cash cows right now, with a new IHS Markit report (relayed by The Investor) highlighting Samsung’s impressive domination over the latter market.

The Samsung Display arm of Samsung Electronics apparently made a mind-blowing 93.3 percent of the world’s smartphone OLED screens sold between July and September 2018. That helped generate 58.4 percent of total smartphone display revenues, as LCDs continue to shrink in popularity.

After accounting for 56.2 percent of overall earnings just a year ago, liquid-crystal displays plunged to a 38.9 percent market share in Q3 2018. Very few high-end devices use LCD panels nowadays, and more and more LCD-specialized display manufacturers are shifting their focus to higher-quality OLEDs.

But it’s going to take a long time for the likes of LG, Sharp, and BOE to catch up with Samsung, which has a near-monopolistic position even in the supply chain of arch-rival Apple.

If you’re wondering just how profitable OLED panels can be, we should probably mention they accounted for 61.1 percent, or a whopping $6.6 billion, of the $10.8 billion sales generated by the entire smartphone display industry during this year’s third calendar quarter. Incredibly enough, Samsung’s share of shipments stood at only 22.8 percent, hinting at some pretty massive profit margins.

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20 Comments

2. Tsepz_GP

Posts: 1125; Member since: Apr 12, 2012

They are absolutely fantastic, I hope Huawei starts using Samsung panels, even if they use Samsung as a secondary supplier instead of LG, and stick with BOE as their main supplier.

13. maherk

Posts: 6527; Member since: Feb 10, 2012

They should ditch both if you ask me, as I tried both panels and both have big flaws in terms of quality

3. sissy246

Posts: 6831; Member since: Mar 04, 2015

They do have the best displays.

4. Xxtoxicskittlexx

Posts: 115; Member since: Jun 11, 2018

Is this an economic outlook and recap of Samsung or is it about oleds? Why so angry PA?

5. ZEUS.the.thunder.god

Posts: 1067; Member since: Oct 05, 2011

When I switched over to OP6 from S8+, I almost cried lol. OnePlus has an excellent display but when you put it next to a Samsung flagship, the difference is huge. Display is one of the reasons I'm switching to Note10 next year.

9. Peaceboy

Posts: 640; Member since: Oct 11, 2018

Samsung will fail very hard, losing on low, mid and high end markets for smartphones.

10. John-Knotts

Posts: 380; Member since: Feb 28, 2015

Hahaha... You guys say that every year. Keep dreaming

16. ShaikhJGI

Posts: 356; Member since: Jan 10, 2014

"As flagship designs have become a bit repetitive for Samsung" - PA Why the hell I don't see this statement in a iPhone article or review from PA? Am I missing something here while reading Apple articles?

20. almostdone

Posts: 408; Member since: Sep 25, 2012

iPA bias as usual. Use ad blockers to show your discontent until they become unbiased.

19. almostdone

Posts: 408; Member since: Sep 25, 2012

Samsung doesn't need their phones to sell that well as they produce the best components. Samsung is in the forefront of technological advancement unlike the fruity company who doesn't have a clue about real innovations. Samsung spends so much money in R&D it pays off in the long run. They will exist even if the smartphone market died. Samsung list of products they produce are endless.

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