The prices of OLED panels for smartphones are predictable to drop due to the extreme oversupply caused by the Coronavirus pandemic. The situation is further made worse due to the sanction against Huawei.
The reports are coming that, the global smartphone market slowed in the first half of 2020 because of the viral outbreak.
This led to the fall of demand for OLED panels. In the third quarter of this year, 113 million smartphones with OLED displays were shipped, which is down by 17.9 percent from 2019. In the fourth quarter, a similar result is expected.
On the other hand, Huawei’s smartphone business is in decline and is expected to negatively affect the smartphone OLED market. In the second quarter of 2020, the Chinese tech giant accounted for 53.4 percent of all OLED smartphones in China, having a higher share than its competitors Oppo, Vivo, and Xiaomi combined. Though, sources close to the matter have stated that the company is only expected to ship 50 million smartphone units in 2021.