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There Are Three Reasons Why BOE Cooperates With HUAWEI

There Are Three Reasons Why BOE Cooperates With HUAWEI

Mar 28, 2017

Part of the next generation of iPhone models will be equipped with OLED screen, seems to be a sure thing. South Korean media recently reported the news that Apple and Samsung are likely to have signed up the OLED orders agreement for 2.6 billion. Allegedly, apple is expected to order 75 million pieces of OLED from Samsung display screen, accounted for 14% of the OLED screen production, Samsung will receive 56% of the screen, OPPO and vivo will ensure 13% and 10% of the OLED screen share. Samsung and Apple declined to comment.

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If the news is true, Samsung, apple, OPPO, vivo accounted for 93%, the rest, has been quite limited. It is worth noting that the above mentioned broke the brand, are not included in the 2016 Samsung court, the current China mobile phone market as "leading" HUAWEI.

However, the recent news claimed that the OLED screen that HUAWEI and the domestic panel makers BOE cooperated has been successful mass production, however, HUAWEI and BOE official did not disclose the relevant information. However, in my opinion, there is possible and motivation for HUAWEI involved in the field of panel:

Direct motivation: solve the supply problem of mobile display panel

Although the application of big size is not yet mature, but the small size of the OLED screen, has become a lot of flagship phone standard, according to the author's understanding, the advantages are as follows:

 1. Light material, touch sensitivity is higher;

  2. Bright color, high contrast, to ensure a good viewing effect;

  3. the light emitting material, the general use of relatively low power consumption, thereby ensuring a relatively better endurance effect;

  4. Ductility is good, can make the surface state, or even to the "folding" development, thus to      bring more space for product design.

In addition, nail technology believes that the use of OLED screen at this stage, there are two points: first, pull the high product tonality (mainly used in high-end products), two and the formation of the difference.

s the high-end product strategy in the relatively high position of HUAWEI, in 2016 to follow a curved OLED screen design, in the current mobile phone market competition situation, in order not to be against the false start, continuous application of OLED screen in the product, is almost inevitable choice.

However, data show that in 2016 Q3, Samsung global control of flexible OLED panel of 93.7% market share, the market share of small and medium size panel is as high as 31.8%, the total value of 28.5% more than second JDI and third LGD. In this situation, the technology driven HUAWEI, it may be directly involved in the panel area, because the nail technology that, in addition to solving the problem, it has a larger layout.

Deep motivation: the construction of industrial chain closed loop, expanding competitiveness

No longer talk about catching up Samsung and Apple in five years, is the embodiment of HUAWEI's pragmatic style, however, this does not mean that HUAWEI and Samsung and Apple's disappearance of competitive relationships. The contest between HUAWEI and Samsung, apple, it is not a simple domestic market customary price war, but must be the technical strength and the ability to control the supply chain contest.

According to this observation, HUAWEI, Samsung, apple on the mobile phone as a smart key chip formation control, and the relative advantages of Apple lies in the software and system level; at the same time, although apple have not formed the industrial chain closed its own, but it has considerable control ability to the downstream, most notably with suppliers bargaining power; Samsung in the mobile phone field basically establishes a complete closed loop of its own industrial chain.

The author believes that the key to expand the competitiveness of HUAWEI phones, but also to better grasp the supply chain. At the beginning of this year, there is news that HUAWEI came to the supply chain under the revised first gerahs goods, since the original 38 million dropped to 35 million units, then insiders refer to the supply chain itself or the tight capacity. 2015, there is news that due to tight supply of Samsung AMOLED screen, OPPO may reduce production capacity.

The sources said, HUAWEI, OPPO and vivo by apple to Samsung, the order of the OLED panel set up alliance, aims to promote other OLED screen suppliers to improve the capacity, but also to enhance the ability to control the industrial chain. But for technology driven HUAWEI, independent research and development, self built industrial chain closed loop, perhaps a better choice.

Possible motivation: ready to enter the TV + try new growth points

In addition to the mobile phone business, HUAWEI may also have other considerations.

I noticed that the end of last year, ask a user with "HUAWEI terminal", attracted a lot of attention, in answer to "HUAWEI TV sales" this issue, "HUAWEI said there is no" terminal ", but" waiting for one day to see HUAWEI tv".

Previously, HUAWEI has been rumored to be a TV news. In the consumer business has a high expectations, while there is a layout on the TV box, while in manufacturing, research and development, quality control has a good foundation of HUAWEI, is likely to get involved in the TV terminal. Get involved in the panel business, it is possible to further into the TV market HUAWEI opportunity.

In addition, besides the original business, HUAWEI is also possible to try to get new business growth points through technology. After HUAWEI R & D independent chip, there is the view that, HUAWEI will output the related technology, however, signs, as HUAWEI mobile phone to enter the high-end market in the short term, HUAWEI should not be foreign supply, but there were no marked obvious label panel is different.

Finally, the last problem is that the BOE will not cooperate with HUAWEI OLED panel. Recently, there is news that Apple has been with China's BOE, Huaxing electronics, Tianma microelectronics, and Hui optoelectronics, Kunshan and the state of science and technology six companies to discuss OLED. Apple's AMOLED screen test has been carried out for several months, and may consider next year BOE will join the list of suppliers.

Nevertheless, in the nail technology seems that this does not affect the cooperation between the BOE and HUAWEI. Late last year, there is news that the BOE in Sichuan these two OLED production lines, basically in order to meet the needs of future customers Lenovo and HUAWEI set up demand.