BOE To Lose Out Handset Panel Shipment Race To Samsung Display In 2020

BOE Technology is likely to lose out to Samsung Display in a shipment race for handset panels in 2020 as most of China’s panel makers are to be forced to delay their production due to unsteady supplies of raw materials in the wake of the coronavirus outbreak, according to industry sources.

Data from China-based CINNO Research showed that global handset panel shipments reached 1.86 billion units in 2019, with Chinese panel players for the first time accounting for over 50% of total shipments.

BOE served as the top supplier with a 22.2% share, which was 1pp ahead of the second-place Samsung Display. Tianma Microelectronics took third with an 11.9% share thanks to its robust shipments of LTPS panels, the data showed.

However, data compiled by IHS Markit indicated that Samsung Display was the top vendor for handset panels in 2019, followed by BOE and Tianma. The market research firm did note that BOE saw its panel shipments grow 17.5% on year in 2019 compared to Samsung Display’s 8%.

Looking ahead, not only total output from China’s panel makers will be reduced due to production delays but also consumer demand for smartphones will also be hampered due to lost confidence caused by transport curbs and other healthy measures, said the sources.

Based on an assumption that the epidemic will be able to be contained by June, smartphone shipments in China will fall 30% to 280 million units in 2020, down from 400 million units projected earlier; and global smartphone shipments will be down by 22.9% to 1.08 billion units from a projected 1.4 billion units, Digitimes Research estimates.

CINNO also expects China’s smartphone sales to drop to 300-320 million units in 2020 if the outbreak is placed under control by the end of April.―Digitimes