With reports that Apple will launch its first "foldable phone" next year, Samsung Display, which will exclusively supply the organic light-emitting diode (OLED) panels used in foldable phones, is said to be accelerating preparations for mass production. Samsung Display is understood to have begun bringing in equipment for sample production and yield stabilization ahead of mass-producing OLEDs for Apple's foldable phone.
According to the industry on the 12th, Samsung Display has begun preparations for mass production of OLEDs featuring "crease-free" technology, which is slated to be used in Apple's foldable phone. Samsung Display is reportedly in talks with multiple partners to introduce equipment and other tools needed to produce OLEDs for Apple's foldable phone. The crease-free technology is applied to eliminate the creasing that occurs when a display panel is folded or bent. It removes crease marks that appear when the screen of devices such as foldable phones is folded, providing a natural screen as if it were a flat, non-folding display.
Nam Sang-uk, a research fellow at the Korea Institute for Industrial Economics & Trade (KIET), said, "Since OLEDs for foldable phones will be supplied to Apple for the first time, there is a high possibility that talks on delivery volumes will be wrapped up early," and noted, "Apple and Samsung Display's supply contract appears to be nearing completion, and pilot production is expected to begin soon."
With Apple set to release a foldable phone next year, some analysts say it will drive demand in the foldable phone market. Park Jun-seo, an analyst at Mirae Asset Securities, said, "Apple's foldable phone shipments are being revised up to 8 million to 10 million units next year and 20 million to 25 million units in 2027," and explained, "In the long term, a shipment outlook of around 45 million units in 2029 is also being suggested." According to the market research firm TrendForce, this year's global foldable phone shipment outlook stands at about 19.8 million units.
Amid this, the dominant view is that Samsung Display will exclusively supply OLEDs for Apple's foldable phone next year. Rival LG Display has no track record of supplying OLEDs for foldable phones to smartphone makers, and while China's BOE supplies foldable phone OLEDs in volume to domestic smartphone manufacturers, it is assessed to lag behind Samsung Display in terms of technology.
A display industry official said, "LG Display appears to have been left out of the foldable phone panel supply lineup, and the prevailing view is that BOE will not pass Apple's stringent quality thresholds," adding, "The mood is that Samsung Display's sole supply is a near certainty."
Samsung Display is said to be planning to finish bringing in equipment needed for mass production within the second half of this year and to ramp up pilot production, in order to supply OLEDs for foldable phones to Apple in a stable manner.
A display industry official explained, "As Samsung Display will be supplying several million OLEDs for foldable phones to Apple for the first time next year, it has been speeding up mass-production preparations in the second half," adding, "Sample production and yield stabilization are expected to get fully underway within the year."