Trade Resources Industry Views Smartphone Vendors Have Begun Pushing Partnerships

Smartphone Vendors Have Begun Pushing Partnerships

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First-tier China-based smartphone vendors Huawei Technologies, Oppo, Vivo and BBK, due to concerns that Apple may monopolize supplies of smartphone-use AMOLED panels from Samsung Display and Japan-based makers in the future, will cooperate with China-based flexible panel maker Royole to form a consortium for joint investment in local flexible AMOLED production in 2017, according to China-based media reports.

Since Apple's next-generation products including tablets and smartphones may use AMOLED panels, demand from 2018-2020 is expected to stay strong which will limit other smartphone vendors from acquiring sufficient supply. This will cause their products to become less competitive in the market.

As a result, several China-based smartphone vendors have begun pushing partnerships with upstream panel makers to secure AMOLED panel supply.

China-based smartphone vendor BBK has already established an independent subsidiary to focus on manufacturing panels and BBK's goal for the subsidiary is to expand its monthly capacity to at least 60,000 AMOLED panels from 2017-2019.

Royole is also expanding its AMOLED capacity to 45,000 units in 2017 and 2018 and will establish new 5.5G production lines in Shenzhen, China.

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Leading China Smartphone Vendors Reportedly to Form Consortium to Secure AMOLED Supply, Say Reports