Samsung Display to Boost OLED Production by 10% in 2025

Samsung Display plans to increase its production of medium and small-sized Organic Light Emitting Diode (OLED) panels by 10% next year, focusing on high-value products such as tablet displays and foldable OLED screens. This strategic shift is aimed at opening new revenue streams as the company adapts to the changing market dynamics.

Industry insiders revealed on November 12 that Samsung Display aims to produce 475.6 million medium and small-sized OLED panels in 2025, a 10.25% increase from the 432.2 million panels expected by the end of Q3 this year. Although production plans may adjust depending on market conditions, Samsung Display's strong presence—holding over 50% of the global market share for medium and small-sized OLED panels—makes its annual production forecast a key indicator for the broader industry trends.

Notably, the production of IT rigid OLED panels and foldable displays is expected to see significant growth. Samsung Display plans to manufacture 12.5 million IT rigid OLED panels in 2025, a 56% increase from the 8 million expected this year. Similarly, production of foldable displays, primarily used in Samsung Electronics' Galaxy Z Fold series, is set to reach 12.5 million units, a 150% increase from the anticipated 5 million units this year.

The primary driver behind this production increase is the stagnation in the smartphone market, which has traditionally been Samsung Display's core revenue source. Over 90% of its medium and small-sized OLED panels are currently used in smartphones. While sales of OLED panels for mid-range smartphones have exceeded initial expectations this year, the high-end smartphone market has seen only modest growth. Samsung Electronics forecasts a 2.5% growth in the global smartphone market for 2023, with growth slowing to less than 1% in 2024.

In light of this, Samsung Display is seeking new growth opportunities, particularly in the tablet market. Industry experts predict a shift from traditional LCD to OLED panels in tablets, with OLED adoption expected to exceed initial projections. Although production of IT rigid OLED panels for tablets was below expectations this year, it is expected to rise significantly in 2025, with an estimated 11.25 million units.

The company is also preparing for further expansion in the foldable display market. Following the October 21 launch of the special edition Galaxy Z Fold and plans for a new foldable model in the second half of 2024, Samsung Display is increasing production to meet anticipated demand. During the Q3 earnings call, Samsung Display confirmed that despite the limited growth in the smartphone market next year, OLED panel adoption is expected to rise, particularly in foldable technology and the IT sector.

In addition to competition in the smartphone space, Samsung Display faces increasing challenges in its OLED supply chain for Apple. Despite a strong partnership with Apple for iPhone displays, Samsung Display's position is being pressured by the growing presence of LG Display and BOE in Apple's OLED supply chain. Analysts predict that Samsung Display's OLED panel supply to Apple may remain flat in 2024. At the end of Q3, Samsung Display projected it would supply 130.2 million OLED panels for iPhones and iPads in 2023, with minimal changes expected in the following year.