The next big thing in smartphones and tablets will be flexible display technology, which will allow for bendable, foldable and rollable digital devices. Korean companies Samsung Electronics and LG Electronics are well positioned to benefit from this given their leadership in OLED technology and vertically integrated supply chains. The first prototype products using plastic substrates could be available within a few months, with curved screen phones potentially launching in 3Q13. Flexible display could help drive further innovation in the industry and strengthen Samsung and LG's positions, while also providing opportunities for suppliers further down the supply chain like Cheil Industries, SFA and Duksan Himetal.
The document discusses the outlook for the touch screen market in Korea, which remains bright due to growing demand for smartphones and tablet PCs. The analyst initiates coverage of two Korean touch screen companies, Iljin Display and Melfas, with "Buy" ratings. While some touch screen technologies are becoming obsolete, the analyst believes costs will be an important factor in which technologies are adopted. Overall the sector is expected to see continued growth in 2012.
This document provides an agenda for the "Connected In-Vehicle Infotainment Global Summit 2012" conference to be held on September 25-26, 2012 in London. The agenda outlines keynote panels and discussions on developing standardized solutions for integrating consumer electronics and connectivity into vehicle infotainment systems. Specific topics that will be covered include connectivity strategies, smartphone integration, monetizing connectivity opportunities, human-machine interfaces, and establishing common industry standards. The document also provides sponsor and exhibitor information for the conference.
GMIC 2012 - Megatrends, Vision Mobile, Presentation by Mr Andreas ConstantinouGreat Wall Club
The document discusses how the telecom business is transforming in the software era. It summarizes that mobile platforms are battling for dominance while Internet business models are impacting telecoms. It also discusses how developers and tools are fueling a mobile app gold rush, and how telecom companies must unbundle and compete in the software era to survive.
Neomobile is a global Mobile Commerce Group.
We are the new generation mobile content network.
We are the mobile monetization enabler for the best digital companies.
Discover more at www.neomobile.com
Mobile commerce encompasses any transaction initiated or completed through a mobile device, from content discovery to final payment. It has massive potential to change how consumers shop and pay by enabling innovative purchases. Mobile commerce creates value for companies, clients, and partners.
The document discusses Open Source Software (OSS) as a strategic weapon and summarizes Telefonica's Morfeo initiative. Morfeo is Telefonica's OSS community that hosts R&D projects to define standards and create business opportunities around them. Key projects discussed include EzWeb, a mashup platform, and MyMobileWeb, an open source platform for developing mobile websites.
- Voice recognition systems have improved significantly in recent years and are becoming a critical feature in automobiles. When done correctly, voice control helps minimize driver distraction.
- The 2010 Consumer Electronics Show is expected to showcase innovations in energy and healthcare technologies for automobiles. Ford will likely continue expanding their SYNC system.
- OEM platform integration is key for enabling a broad range of telematics features, as it allows telematics platforms to serve as communication servers and interface with other vehicle systems.
BYD follows three key strategies:
1. Vertical integration through backward and forward integration to control the value chain and reduce costs.
2. Low cost leadership through investing in labor, minimizing R&D costs, and exploiting China's low labor costs.
3. Strategic innovation in electric vehicles, batteries, and new products to be the first mover in new markets.
The document discusses the outlook for the touch screen market in Korea, which remains bright due to growing demand for smartphones and tablet PCs. The analyst initiates coverage of two Korean touch screen companies, Iljin Display and Melfas, with "Buy" ratings. While some touch screen technologies are becoming obsolete, the analyst believes costs will be an important factor in which technologies are adopted. Overall the sector is expected to see continued growth in 2012.
This document provides an agenda for the "Connected In-Vehicle Infotainment Global Summit 2012" conference to be held on September 25-26, 2012 in London. The agenda outlines keynote panels and discussions on developing standardized solutions for integrating consumer electronics and connectivity into vehicle infotainment systems. Specific topics that will be covered include connectivity strategies, smartphone integration, monetizing connectivity opportunities, human-machine interfaces, and establishing common industry standards. The document also provides sponsor and exhibitor information for the conference.
GMIC 2012 - Megatrends, Vision Mobile, Presentation by Mr Andreas ConstantinouGreat Wall Club
The document discusses how the telecom business is transforming in the software era. It summarizes that mobile platforms are battling for dominance while Internet business models are impacting telecoms. It also discusses how developers and tools are fueling a mobile app gold rush, and how telecom companies must unbundle and compete in the software era to survive.
Neomobile is a global Mobile Commerce Group.
We are the new generation mobile content network.
We are the mobile monetization enabler for the best digital companies.
Discover more at www.neomobile.com
Mobile commerce encompasses any transaction initiated or completed through a mobile device, from content discovery to final payment. It has massive potential to change how consumers shop and pay by enabling innovative purchases. Mobile commerce creates value for companies, clients, and partners.
The document discusses Open Source Software (OSS) as a strategic weapon and summarizes Telefonica's Morfeo initiative. Morfeo is Telefonica's OSS community that hosts R&D projects to define standards and create business opportunities around them. Key projects discussed include EzWeb, a mashup platform, and MyMobileWeb, an open source platform for developing mobile websites.
- Voice recognition systems have improved significantly in recent years and are becoming a critical feature in automobiles. When done correctly, voice control helps minimize driver distraction.
- The 2010 Consumer Electronics Show is expected to showcase innovations in energy and healthcare technologies for automobiles. Ford will likely continue expanding their SYNC system.
- OEM platform integration is key for enabling a broad range of telematics features, as it allows telematics platforms to serve as communication servers and interface with other vehicle systems.
BYD follows three key strategies:
1. Vertical integration through backward and forward integration to control the value chain and reduce costs.
2. Low cost leadership through investing in labor, minimizing R&D costs, and exploiting China's low labor costs.
3. Strategic innovation in electric vehicles, batteries, and new products to be the first mover in new markets.
Telcos must embrace and partner with over-the-top (OTT) services to survive the growing popularity and power of OTT. Telcos still have a role to play beyond bandwidth provisioning, but must understand what OTT players want from telcos. Telcos should open their network APIs and transform into a "toolbox" to help OTT players innovate. IDA is expanding its AMPlify program to support startups in developing applications across multiple platforms and expanding into enterprise and social business.
This presentation won the "Change in Action" 2010 Case Competition conducted by the IE Business School for the April 2011 intake.
Information for internal use only.
Cambridge Consultants Innovation Day 2012: How the mobile industry is influen...Cambridge Consultants
As mobile devices become the user interface to the world we live in, they have started to drive the evolution of a wide range of industries. While this may look like land grab, in fact it is the scale and competitiveness of the mobile industry that is driving innovation that, in turn, benefits other industries and accelerates their rate of evolution. In this seminar, we’ll look at how the competitive behaviour in the mobile industry is both threatening and creating opportunities for innovation in other consumer electronics markets.
Project report on Marketing Strategy of Nokia and Samsung by SAHIB KHAN 90120...sahibkhan143
This document provides a summary of the marketing strategies of Nokia and Samsung mobile phone companies. It begins with an industry profile of the growth of India's mobile sector from the 1990s through 2008. It then provides details on Nokia and Samsung's company profiles, including their histories, product lines, branding, pricing, and promotion strategies. The document concludes with a comparison of Nokia and Samsung's approaches in these areas.
2007 Financial Analyst Meeting Presentation Please Note: This is a large doc...finance7
This document contains the transcript of a presentation by Motorola executives. It discusses Motorola's mobile device business, including its market share, product portfolio, inventory situation, and path to double-digit operating margins. The presentation focuses on enhancing Motorola's product portfolio across mass market, feature phones, multimedia, and productivity segments. It also outlines Motorola's strategies to improve go-to-market effectiveness and drive efficiency in the business. Separate sections discuss the government and public safety business as well as the enterprise mobility solutions business.
- Johnson Controls is a Fortune 100 company that operates across multiple industries including building controls, batteries, and automotive interiors. It has over 130,000 employees globally.
- The document analyzes Johnson Controls' economic decision making from small-scale contracts to large mergers and acquisitions. It uses the company's deal with Oxford High School to install efficient building controls as an example of smaller deals.
- Larger deals, like Johnson Controls' $490 million acquisition of Hoover Universal in 1985 to expand into the automotive seating industry, are also examined through the lens of economic theories around diversification and market share.
Illinois Tool Works is a diversified manufacturer operating globally with 825 business units across 57 countries. It produces a wide portfolio of engineered and specialty products for industries like transportation, packaging, construction, and more. While originally founded in Illinois in the early 1900s producing metal cutting products, ITW has significantly expanded its operations over 100 years through both organic growth and acquisitions. ITW employs a decentralized business model with business units that are highly responsive to local markets. The company has a wide economic moat due to its large network of expertise and significant patent portfolio.
CMD2012 - Roxanna Zea - Tele2's view on the IndustryTele2
Roxanna Zea, Chief Strategy Officer at Capital Markets Day on December 12, 2012. The summary discusses:
1) Revenue growth in the telecom industry is slowing globally as competition increases across services, access, devices and technology.
2) Exponential data growth continues to accelerate with more people and devices going online, however revenue growth is plateauing.
3) Consumers are moving to a multi-screen world across different devices which is changing the competitive landscape for telecom companies.
Flexible Display UX discusses potential uses of flexible displays in various contexts:
1) Wearable devices like smart watches and bracelets could utilize flexible displays to be customizable, interactive, and provide notifications and music control.
2) Smart glasses could use flexible displays to provide augmented reality directions, to-do lists, weather information, and mobile payments.
3) Flexible smartphones and tablets may be adjustable in size by folding or rolling up the display. This could improve portability and usability.
4) As display sizes increase and thickness decreases, flexible screens could be used for large interactive public displays, electronic paper, and new interaction paradigms.
Flexible display is a display which is flexible in nature; differentiable from the more prevalent traditional flat screen displays used in most electronics devices. In the recent years there has been a growing interest from numerous consumer electronics manufacturers to apply this display technology in e-readers, mobile phones and other consumer electronics.
Flexible displays are an exciting development because of their physical and performance attributes and their capability to enable new products requiring displays with unique form factors that the current rigid glass substrate based displays cannot support. Flexible displays can be very thin, light weight, have unique form factors and be highly rugged and not prone to breakage on impact unlike rigid and flat glass substrate based displays. The flexible form factors such as having an arbitrary shape, ability to be curved, conformal, bendable, and roll-able can enable a variety of new applications and products.
Technology advances in flexible displays and substratesSalman Khaja
Flexible displays can be produced on plastic or other flexible materials and attached to surfaces in various shapes. AMOLED displays are well-suited for flexible displays as they do not require backlighting and can be produced using roll-to-roll manufacturing. The FlexUp technology allows for high temperature processing of flexible displays on glass carriers before debonding and transferring the circuitry onto flexible plastic substrates. Passivation layers and encapsulation techniques help protect flexible AMOLEDs from stress and moisture during bending. i2R e-paper uses liquid crystals and pigment layers that reflect light to display images without power by mimicking the appearance of ordinary paper.
This technical seminar discusses electronic paper (e-paper) and flexible displays. E-paper is a display that is flexible and can be bent like paper. It has a wide viewing angle and low power consumption. E-paper was first developed in the 1970s and works by having black and white particles move to the top or bottom of capsules to create an image. Flexible displays allow users to interact with devices by twisting, bending, and folding. E-paper has applications in electronic shelf labels, e-books, and could replace newspapers and books in the future. The seminar covers the history, construction, functionality, advantages, and applications of e-paper and flexible displays.
Latest ppt on flexible electronics could be helpful for transparent electroni...Azhar Syed
This document provides an overview of flexible electronics presented by Azhar.A.Syed. It discusses focused areas like flexible circuits boards, electronic components and displays. Manufacturing is done using roll-to-roll processing and inkjet printing. Applications include automotive, space crafts, foldable displays and military uses. Advantages are lighter weight, smaller size and foldability while disadvantages include high initial costs and integration challenges. The future of flexible electronics is expected to enable innovative applications in security and entertainment.
This document discusses flexible electronic displays and organic light emitting diode (OLED) technology. It begins with acknowledgements and outlines the aims and structure of the project. It then discusses what makes flexible displays attractive, describing them as rugged, lightweight, thin, portable and low power. It explains that flexible displays are either reflective like e-paper or emissive like OLEDs. Key types of reflective displays discussed are Gyricon, electrophoretic ink and cholesteric, while OLED displays are described as self-emissive. Advantages of flexible OLEDs include being thinner, lighter, flexible and requiring less power than other display technologies.
WhatsApp is a cross-platform messaging app founded in 2009 by Brian Acton and Jan Koum. It allows users to send text messages, images, video, and audio media to other users without having to pay for SMS. Key features include end-to-end encryption, support for many platforms, and no login requirements. WhatsApp has grown rapidly to over 1.5 billion monthly active users as of 2016, making it one of the most popular messaging apps in the world due to its ease of use and lack of costs compared to traditional SMS.
This document discusses flexible electronics. It begins with an introduction to advances in thin-film materials and devices that have enabled developments in flexible electronics. It then outlines various materials used in flexible electronics like substrates, backplane electronics, frontplanes and encapsulation. It discusses technologies involved in processing flexible electronics like batch and roll-to-roll fabrication. The document covers applications in various fields like healthcare, displays, energy and more. It concludes by discussing advantages like size/weight reductions and increased circuitry density, while noting limitations like lifetime and manufacturing challenges.
E = g lk+ 2
+ − − +
r m 0 m 0 4 ε 0 h ( ε 0 2 e 0 m 0
8 em hm πεr 2 2ε ) m m hm
Brus, L. E. J. Phys. Chem. 1986, 90, 2555
Semiconductor quantum dots are nanocrystals made of semiconductor materials such as CdSe, ZnSe, ZnS, and ZnO. They exhibit size-dependent optical and electronic properties due to
These slides use concepts from my (Jeff Funk) course entitled analyzing hi-tech opportunities to analyze how the economic feasibility of flexible OLED displays are becoming better through newer and thinner materials, roll-to roll printing, and larger production equipment. Thinner materials along with new materials increase flexibility, reduce moisture permeation and thus increase the lifetime, and reduce cost. Flexibility enables displays that conform to complex shaped things such as wrists and backpacks and that can be fit inside pens and other tubes. Along with other technologies, this further facilitates information access.
Telcos must embrace and partner with over-the-top (OTT) services to survive the growing popularity and power of OTT. Telcos still have a role to play beyond bandwidth provisioning, but must understand what OTT players want from telcos. Telcos should open their network APIs and transform into a "toolbox" to help OTT players innovate. IDA is expanding its AMPlify program to support startups in developing applications across multiple platforms and expanding into enterprise and social business.
This presentation won the "Change in Action" 2010 Case Competition conducted by the IE Business School for the April 2011 intake.
Information for internal use only.
Cambridge Consultants Innovation Day 2012: How the mobile industry is influen...Cambridge Consultants
As mobile devices become the user interface to the world we live in, they have started to drive the evolution of a wide range of industries. While this may look like land grab, in fact it is the scale and competitiveness of the mobile industry that is driving innovation that, in turn, benefits other industries and accelerates their rate of evolution. In this seminar, we’ll look at how the competitive behaviour in the mobile industry is both threatening and creating opportunities for innovation in other consumer electronics markets.
Project report on Marketing Strategy of Nokia and Samsung by SAHIB KHAN 90120...sahibkhan143
This document provides a summary of the marketing strategies of Nokia and Samsung mobile phone companies. It begins with an industry profile of the growth of India's mobile sector from the 1990s through 2008. It then provides details on Nokia and Samsung's company profiles, including their histories, product lines, branding, pricing, and promotion strategies. The document concludes with a comparison of Nokia and Samsung's approaches in these areas.
2007 Financial Analyst Meeting Presentation Please Note: This is a large doc...finance7
This document contains the transcript of a presentation by Motorola executives. It discusses Motorola's mobile device business, including its market share, product portfolio, inventory situation, and path to double-digit operating margins. The presentation focuses on enhancing Motorola's product portfolio across mass market, feature phones, multimedia, and productivity segments. It also outlines Motorola's strategies to improve go-to-market effectiveness and drive efficiency in the business. Separate sections discuss the government and public safety business as well as the enterprise mobility solutions business.
- Johnson Controls is a Fortune 100 company that operates across multiple industries including building controls, batteries, and automotive interiors. It has over 130,000 employees globally.
- The document analyzes Johnson Controls' economic decision making from small-scale contracts to large mergers and acquisitions. It uses the company's deal with Oxford High School to install efficient building controls as an example of smaller deals.
- Larger deals, like Johnson Controls' $490 million acquisition of Hoover Universal in 1985 to expand into the automotive seating industry, are also examined through the lens of economic theories around diversification and market share.
Illinois Tool Works is a diversified manufacturer operating globally with 825 business units across 57 countries. It produces a wide portfolio of engineered and specialty products for industries like transportation, packaging, construction, and more. While originally founded in Illinois in the early 1900s producing metal cutting products, ITW has significantly expanded its operations over 100 years through both organic growth and acquisitions. ITW employs a decentralized business model with business units that are highly responsive to local markets. The company has a wide economic moat due to its large network of expertise and significant patent portfolio.
CMD2012 - Roxanna Zea - Tele2's view on the IndustryTele2
Roxanna Zea, Chief Strategy Officer at Capital Markets Day on December 12, 2012. The summary discusses:
1) Revenue growth in the telecom industry is slowing globally as competition increases across services, access, devices and technology.
2) Exponential data growth continues to accelerate with more people and devices going online, however revenue growth is plateauing.
3) Consumers are moving to a multi-screen world across different devices which is changing the competitive landscape for telecom companies.
Flexible Display UX discusses potential uses of flexible displays in various contexts:
1) Wearable devices like smart watches and bracelets could utilize flexible displays to be customizable, interactive, and provide notifications and music control.
2) Smart glasses could use flexible displays to provide augmented reality directions, to-do lists, weather information, and mobile payments.
3) Flexible smartphones and tablets may be adjustable in size by folding or rolling up the display. This could improve portability and usability.
4) As display sizes increase and thickness decreases, flexible screens could be used for large interactive public displays, electronic paper, and new interaction paradigms.
Flexible display is a display which is flexible in nature; differentiable from the more prevalent traditional flat screen displays used in most electronics devices. In the recent years there has been a growing interest from numerous consumer electronics manufacturers to apply this display technology in e-readers, mobile phones and other consumer electronics.
Flexible displays are an exciting development because of their physical and performance attributes and their capability to enable new products requiring displays with unique form factors that the current rigid glass substrate based displays cannot support. Flexible displays can be very thin, light weight, have unique form factors and be highly rugged and not prone to breakage on impact unlike rigid and flat glass substrate based displays. The flexible form factors such as having an arbitrary shape, ability to be curved, conformal, bendable, and roll-able can enable a variety of new applications and products.
Technology advances in flexible displays and substratesSalman Khaja
Flexible displays can be produced on plastic or other flexible materials and attached to surfaces in various shapes. AMOLED displays are well-suited for flexible displays as they do not require backlighting and can be produced using roll-to-roll manufacturing. The FlexUp technology allows for high temperature processing of flexible displays on glass carriers before debonding and transferring the circuitry onto flexible plastic substrates. Passivation layers and encapsulation techniques help protect flexible AMOLEDs from stress and moisture during bending. i2R e-paper uses liquid crystals and pigment layers that reflect light to display images without power by mimicking the appearance of ordinary paper.
This technical seminar discusses electronic paper (e-paper) and flexible displays. E-paper is a display that is flexible and can be bent like paper. It has a wide viewing angle and low power consumption. E-paper was first developed in the 1970s and works by having black and white particles move to the top or bottom of capsules to create an image. Flexible displays allow users to interact with devices by twisting, bending, and folding. E-paper has applications in electronic shelf labels, e-books, and could replace newspapers and books in the future. The seminar covers the history, construction, functionality, advantages, and applications of e-paper and flexible displays.
Latest ppt on flexible electronics could be helpful for transparent electroni...Azhar Syed
This document provides an overview of flexible electronics presented by Azhar.A.Syed. It discusses focused areas like flexible circuits boards, electronic components and displays. Manufacturing is done using roll-to-roll processing and inkjet printing. Applications include automotive, space crafts, foldable displays and military uses. Advantages are lighter weight, smaller size and foldability while disadvantages include high initial costs and integration challenges. The future of flexible electronics is expected to enable innovative applications in security and entertainment.
This document discusses flexible electronic displays and organic light emitting diode (OLED) technology. It begins with acknowledgements and outlines the aims and structure of the project. It then discusses what makes flexible displays attractive, describing them as rugged, lightweight, thin, portable and low power. It explains that flexible displays are either reflective like e-paper or emissive like OLEDs. Key types of reflective displays discussed are Gyricon, electrophoretic ink and cholesteric, while OLED displays are described as self-emissive. Advantages of flexible OLEDs include being thinner, lighter, flexible and requiring less power than other display technologies.
WhatsApp is a cross-platform messaging app founded in 2009 by Brian Acton and Jan Koum. It allows users to send text messages, images, video, and audio media to other users without having to pay for SMS. Key features include end-to-end encryption, support for many platforms, and no login requirements. WhatsApp has grown rapidly to over 1.5 billion monthly active users as of 2016, making it one of the most popular messaging apps in the world due to its ease of use and lack of costs compared to traditional SMS.
This document discusses flexible electronics. It begins with an introduction to advances in thin-film materials and devices that have enabled developments in flexible electronics. It then outlines various materials used in flexible electronics like substrates, backplane electronics, frontplanes and encapsulation. It discusses technologies involved in processing flexible electronics like batch and roll-to-roll fabrication. The document covers applications in various fields like healthcare, displays, energy and more. It concludes by discussing advantages like size/weight reductions and increased circuitry density, while noting limitations like lifetime and manufacturing challenges.
E = g lk+ 2
+ − − +
r m 0 m 0 4 ε 0 h ( ε 0 2 e 0 m 0
8 em hm πεr 2 2ε ) m m hm
Brus, L. E. J. Phys. Chem. 1986, 90, 2555
Semiconductor quantum dots are nanocrystals made of semiconductor materials such as CdSe, ZnSe, ZnS, and ZnO. They exhibit size-dependent optical and electronic properties due to
These slides use concepts from my (Jeff Funk) course entitled analyzing hi-tech opportunities to analyze how the economic feasibility of flexible OLED displays are becoming better through newer and thinner materials, roll-to roll printing, and larger production equipment. Thinner materials along with new materials increase flexibility, reduce moisture permeation and thus increase the lifetime, and reduce cost. Flexibility enables displays that conform to complex shaped things such as wrists and backpacks and that can be fit inside pens and other tubes. Along with other technologies, this further facilitates information access.
These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for Transparent and Flexible Displays. Transparent displays provide new forms of value to users particularly in the form of better augmented reality. They also make bi-direction games and other forms of communication and entertainment possible. They can be used in tablet computers, mobile phones, and other electronic devices by tech junkies and other potential users. These slides also explain other aspects of the business model such as the method of value capture, scope of activities, and method of strategic control.
WhatsApp is a cross-platform messaging app that allows users to exchange text, images, video and audio messages for free over the internet using a data plan or Wi-Fi. It was founded in 2009 and has become popular as it eliminates the costs of SMS messaging and allows users to easily communicate with contacts across different mobile platforms through a simple to use interface.
A durable and flexible display with low-power consumption, high-contrast ratio, has been a technical challenge for years. They have to be lightweight, rugged, and in some cases, conformal, wearable, rollable and unbreakable. The recent successful integration of flexible display technologies and the traditional web-based processing and/or inkjet technologies has opened up the possibility of low cost and high throughput roll-to-roll manufacturing and has shown the potential to replace the paper used today.
Quantum dots are semiconductor nanoparticles that confine electrons and holes in all three dimensions. They are made using different methods like lithography, colloidal synthesis, or epitaxy. Quantum dots have discrete energy levels that depend on their size and shape. They have potential applications in solar cells, LEDs, bioimaging, drug delivery, and anti-counterfeiting due to their tunable light emission properties.
- Quantum dots are semiconductor nanoparticles that exhibit unique optical and electronic properties due to their small size (around 4 million dots fit in a 2cm area).
- Current research is investigating applications for quantum dots in areas like displays, solar cells, computer storage, and programmable matter. Quantum dot displays could produce richer colors than LCDs and be integrated into flexible or multi-purpose screens. Quantum dot solar cells may lead to higher efficiency photovoltaics.
- The future potential applications of quantum dots include foldable or color-changing screens, invisible solar coatings, vastly increased computer storage capacity, and materials with customizable properties through electron manipulation at the quantum level.
This document discusses the handset industry and recommends stocks. It maintains an overweight rating for Korean handset makers and recommends Samsung Electro-Mechanics as the top pick due to expected growth in smartphone demand in emerging markets driving up demand for high-end components. It also recommends LG Electronics as the second top pick given improving competitiveness of its flagship smartphones and expected market share recovery and profitability improvement. Chinese handset makers are aiming to expand their local market share, which will lower industry prices and margins but boost demand for high-performance components. Competition and subsidy wars are expected to reduce profitability of mid-to-low end smartphones in the second half of 2013.
- Smartphone demand growth in 2013 will be driven by emerging markets like China, where demand is expected to increase by 56% year-over-year.
- Top Chinese smartphone makers ZTE, Huawei, and Lenovo aim to expand their combined market share in China to 22.2% in 2013 through new smartphone releases.
- Competition in the handset industry will intensify in the second half of 2013, lowering industry ASPs and margins as Chinese makers expand globally. However, Samsung Electronics is expected to outperform peers due to its supply chain and cost competitiveness.
- The report recommends Samsung Electro-Mechanics as its top pick, expecting continued growth in Samsung's smartphone shipments to drive up
The document compares flagship TV models from Samsung, LG, and Sony for 2012. Samsung's ES 8000 featured smart content, smart interaction, and smart evolution. LG's OLED TV recreated reality with perfection using OLED display technology. Sony's HX Series offered motion flow XR 960 technology for as real as life pictures. While all had smart TV capabilities, Samsung provided the most fully-featured smart interaction and embedded content.
This document discusses the potential for using AMOLED displays in industrial applications. While AMOLEDs have advantages over LCDs like thinner profiles and flexible designs, the document identifies several reasons why AMOLED technology is not yet suitable for industrial use. Specifically, it notes that AMOLED production is still high cost due to new manufacturing processes. It also has less manufacturer support due to focus on high-volume consumer markets. Reliability over long lifespans required by industry is still unknown. Frequent ending of product lines as technology optimizes also makes adopting AMOLEDs risky for industry's long development cycles. The document concludes AMOLEDs are still several years away from widespread industrial use.
The key trends from CES 2012 included the continued growth of 3D TV technology, with passive 3D that doesn't require glasses showing promise. Smart TVs are becoming more intelligent and connected to other devices, allowing a more integrated experience across different platforms. Automakers are working to make driving more connected and enjoyable through concepts like Ford's Evos car. Competition in the ultraportable laptop market is increasing with many manufacturers introducing alternatives to the dominant MacBook Air. 3D printing technology is moving closer to consumers with products like Cubify that allow printing designs at home.
The document summarizes key findings from a study on the global telecom and technology industry outlook. It finds that:
1) Industry revenue growth has cooled dramatically to just 2% annually compared to a previous 10% rate, with several major sectors seeing revenue declines.
2) Profit margins have been squeezed across the industry as well, with declines in operating income margins of around 50% in consumer electronics and 30% in semiconductors.
3) The industry has underperformed broad market indices in terms of shareholder returns, growing only 5% compared to 16% for the S&P 500 over the past year. The winner-takes-all environment requires significant actions from companies.
Samsung Electronics has experienced uneven sales growth and moderate profits from 2009-2011, while Apple has seen very controlled and constant double-digit growth rates and enormous profits. Samsung relies on partnerships for software while Apple controls its entire ecosystem. Both companies struggled early on but gained dominance through innovation, though Samsung faces challenges maintaining consistent performance and distinguishing its products from competitors.
The document discusses network sharing and other means for mobile operators to improve efficiencies and address profitability challenges. It summarizes that mobile operators have seen costs per customer increase by 8x while average revenue per user has remained constant or declined. Network sharing is presented as a way to optimize infrastructure spending and maximize coverage while maintaining competitive differentiation between operators. The document provides examples of network sharing agreements in countries like Poland and the UK. It also explores alternative business models like an "LTE network factory" to establish a more capital efficient startup.
Global and china oled industry report, 2009168report
This document provides a summary of the global OLED industry market report from 2009. It discusses key topics like the advantages of OLED compared to LCD in terms of lower material costs and thinner designs. However, OLED still faces challenges such as weak durability and high costs associated with LTPS substrate technology. The report also examines major OLED manufacturers and the industry supply chain, as well as market forecasts for different applications like mobile phones, TVs, and more. It provides over 100 charts analyzing trends in the OLED industry from 2009 and before.
The latest in our annual Megatrends report series - Mobile Megatrends 2012 focuses on 9 major trends, showing how the software world is impacting the mobile business. Researched and compiled by VisionMobile.
Want more in-depth insights? Contact us at trends@visionmobile.com to set up a 1-day workshop with VisionMobile analysts
Disponer de tecnología avanzada a través de equipos de última generación es la diferencia que los hoteles pueden ofrecer a sus huéspedes. LG presenta lo más avanzado en tecnología inteligente, estilo y diseño sofisticado de televisores LCD para el segmento sector hotelero.
AMOLED (active-matrix organic light-emitting diode) is a display technology that uses organic compounds to emit light in each pixel, controlled by a thin-film transistor backplane. It is used in mobile devices due to its ability to provide higher refresh rates and lower power consumption than other technologies. Various companies have developed their own variants of AMOLED with different subpixel arrangements and resolutions, including Super AMOLED, HD Super AMOLED, and Full HD Super AMOLED. AMOLED displays are found in many smartphones, tablets, music players, and other portable devices.
AMOLED (active-matrix organic light-emitting diode) is a display technology that uses organic compounds to emit light for each pixel. It is used in mobile devices like phones, media players, and cameras. AMOLED displays consist of an active matrix of OLED pixels deposited on a thin-film transistor array to control current to each pixel. Manufacturers continue developing AMOLED to be lower power, lower cost, and available in larger sizes. Samsung uses terms like Super AMOLED, HD Super AMOLED, and Full HD Super AMOLED to describe variants with higher resolution and improved features. AMOLED provides benefits over LCD but also has weaknesses like being more prone to image persistence and lower maximum brightness
The document discusses speculative predictions for the display industry in 2011. It begins by reviewing predictions made in 2004, finding that while some strategic insights were correct, it underestimated how quickly prices would fall and supply chains would adapt. It then examines the current state of the industry and uncertainties around new technologies like metal oxide and AMOLED. Finally, it outlines scenarios for the future, with the "base case" predicting continued price declines, better performance from Samsung, and new fabs in emerging markets, but still disappointing profits overall.
Cross-platform tools are helping address the challenge developers face in making apps for the many different mobile platforms. There are now over 100 cross-platform tools that allow developers to reuse code across platforms like iOS, Android, Windows Phone and BlackBerry to drastically reduce development costs. These tools are democratizing development by extending the reach of web developers beyond the browser. They also take the web beyond browsers by combining the ease of web development with advantages of native apps like access to device capabilities. Cross-platform tools dilute developer lock-in to platforms and the power platforms have over developers.
Elecon Engineering is a leading provider of material handling equipment and gear solutions in India. It has a 26% market share in the domestic gear market, making it the leader. The company is well positioned to benefit from an estimated Rs32,500 crore of opportunities in the material handling equipment industry over the next few years, driven by growth in core sectors like power, steel, and coal. Elecon's order book and revenues are expected to grow at a CAGR of 40% and 13.5%, respectively, during FY2010-12, supported by a recovery in industrial activity and capital expenditures. The company's strong position in the stable gear market also helps support its profitability.
Elecon Engineering is a leading provider of material handling equipment and gear solutions in India. The company is well positioned to benefit from increasing industrial capital expenditures in sectors like power and steel. The analyst estimates Elecon will grow sales at a CAGR of 13.5% and adjusted profits at 37% over fiscal years 2010-2012 due to improving financials and recovery in the material handling equipment industry. The report initiates coverage on Elecon with a buy recommendation and target price of Rs102 based on attractive valuations and growth opportunities.
Rebooting The Electronics Industry After The Economic CrisisPaul Brody
The reeling financial markets are challenging global business leaders to aggressively rethink their strategies. Across the electronics industry, effects are likely to be quite different, reflecting the enormous diversity of the industry itself. From consumer electronics to medical devices, industry sub-segments will have to respond – each in its own way – to lower consumer spending and stricter access to capital.
Flexible OLED displays are being developed that can be bent, folded, or stretched. Current flexible displays use plastic or metal substrates, which allows the displays to be lighter, thinner, and more durable than glass-based displays. Major companies like Samsung and LG are now mass producing flexible AMOLED displays for use in phones and wearables. However, flexible displays that can be repeatedly bent by the user are still in development and durability under stress remains a challenge that engineers are working to overcome.
Consumers are focusing their technology purchases on multi-function devices like smartphones, tablets, PCs, and HDTVs. Purchase intentions for these devices are much stronger than for single-function devices. Ownership of multi-function devices has greatly increased from 2009 to 2012, while ownership of single-function devices has remained flat or declined as their functionality is absorbed by multi-function devices. This shift reflects consumers' preference for devices that can perform multiple activities.
The document discusses emerging MEMS technologies reshaping the industry, including autofocus, RF switches, oscillators, displays, and temperature/humidity sensors. These technologies are expected to grow significantly between 2011-2017, with CAGRs over 60% in some cases. Leading companies are developing MEMS solutions in these areas to expand their product portfolios and address new market opportunities.
This document summarizes key insights from a study on use cases for DLNA (Digital Living Network Alliance) certified technology. It identifies the most appealing use cases as those that provide new or enhanced functionality, such as taking music and podcasts wirelessly to the car, watching DVR recordings anywhere in the home, and remotely accessing the home network. The least appealing use cases offer only minor improvements over existing solutions. The study also validates that consumers find use cases most resonant when they promote flexibility, frequency of use, and extend the capabilities of the home network.
The document discusses 10 trends that will shape smart devices over the next 5 years:
1) Displays will become more power efficient and flexible like AMOLED.
2) Processors will continue to be dominated by ARM and converge across devices.
3) Sensors will improve and drive the shipment of 6 billion sensor units by 2015.
4) Batteries still lag advances and new technologies like lithium-sulfur may help.
5) Materials like graphene could enable lighter and more flexible form factors.
6) Operating systems will converge across devices with consistent experiences.
7) Applications will move to the cloud with web centricity and browser technology.
8) User interfaces will disrupt with new
The document discusses the 2013 Embedded Market Study conducted by UBM Tech Electronics. Some key findings:
- The study surveyed over 2,000 embedded engineers worldwide about their projects, tools, and development environments.
- At the DESIGN West conference in April 2013, there will be educational sessions on bringing ideas to life, product teardowns, and hands-on training with development boards.
- The study aims to understand the types of technologies used, development processes, operating systems, chips and brands used, and reasons for choices in embedded projects. Questions have been tracked over multiple years.
Small cells that combine cellular and Wi-Fi capabilities will disrupt the cellular network infrastructure market over the next two years. These compact base stations will form a new tier of the wireless network to provide more capacity in urban areas and extend coverage in rural regions. Next-generation base stations must support a mix of 3G, 4G LTE, and Wi-Fi networks, and seamlessly hand off traffic between the different technologies and traditional base stations. Major players are developing small cell solutions through both internal R&D and acquisitions to position themselves in this emerging market.
130304 jpm samsung supply chains-finding winning sub-sectors and companiesMTKDMI
1) The document analyzes Samsung's supply chains for smartphones and tablets, identifying major component suppliers across five sub-sectors: electronic materials, PCBs, electronic components, touch panels, and SPE.
2) It finds that touch panel, PCB and electronic component suppliers have outperformed other sub-sectors in terms of revenue growth and margin expansion in recent years.
3) The document identifies several companies that could benefit from anticipated component value increases in Samsung's upcoming Galaxy S4 and Note3 smartphones, such as touch panel makers, casing suppliers, and battery suppliers.
Semiconductor 130327 the 2013 mc_clean_ic_insightsMTKDMI
1) Intel remained the top semiconductor supplier in 2012, widening its lead over Samsung. Qualcomm saw the largest growth of 34% among the top suppliers to move up to fourth.
2) Pure-play foundries and fabless suppliers performed strongly, with GlobalFoundries and TSMC growing over 30% and Qualcomm growing 34%.
3) Seventeen of the top 25 suppliers saw declining sales in 2012, including eight of the top ten, as the overall semiconductor market declined 3%. Pure-play foundries and fabless companies were exceptions to this trend.
The document discusses Wi-Fi Certified Miracast, a new certification program that allows seamless sharing of screens including graphical, video, and audio content between Wi-Fi devices. Miracast enables users to stream content or mirror displays from one device to another directly over Wi-Fi, without needing an existing network. It builds on Wi-Fi technology to provide interoperability between certified devices from different vendors. The goal is to give users freedom to display content on any Wi-Fi device of their choice in an easy to use manner.
Sarah Jones Neil Mawston
Location: Boston, USA Devices Analysis
London, UK
Email: Kdonnellan@ NMawston@strategyanalytics.com
strategyanalytic @Neilmaw
s.com
Neil Shah
Twitter: @SA_Update Wireless Smartphones
Boston, USA
NShah@strategyanalytics.com
@Neiltwitz
Website: www.strategyanal Sarah Jones
ytics.com Research Assistant
Boston, USA
SJones@strategyanalytics.com
22
The document discusses forward-looking statements and associated risks regarding STMicroelectronics' financial projections and business strategies. It notes uncertainties around ST-Ericsson's performance, demand from key customers and markets, competitive environments, currency exchange rates, litigation outcomes, and various macroeconomic and geopolitical risks. Investors are warned that actual results may differ from projections due to these and other risk factors.
1. Telecoms, Media & Technology
Equity – Asia
April 2013
Flexible Display
Fantastic plastic – a shape-shifting game changer
The smartphone and tablet industries are on the verge of another revolution – look out for a
new wave of innovation starting in 2H13
Curved handsets and bendable, stronger tablets will be the next big thing, thanks to new
plastic materials
Korean companies Samsung Electronics (OW) and LG Electronics (OW) stand to gain the most
from flexible display, but the whole supply chain will benefit; we upgrade Cheil Industries and
SFA to OW and Duksan Himetal to N(V)
By Brian Sohn, Ricky Seo and Jerry Tsai
Disclosures and Disclaimer This report must be read with the disclosures and analyst
certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it
2. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Impact from flexible display
Positive Neutral Negative Reason Impact
Handset SEC Differentiation among smartphone makers Flexible display could help to sustain its dominance in the
makers high-end smartphone segment
LGE Flexible display could be a key differentiating factor in high-end
smartphones, and help to improve ASP and margin. Revise up
2013 handset margin assumption from 0.9% to 3.7%
Materials Cheil New business in plastic substrate and OLED materials to OLED business drives ECM division growth as it expects to
Industries kick in take 23% of ECM revenue in 4Q15 from nothing in 4Q12
LG Chem Contribution from plastic substrate, which accounts for only Although the company is a key player in making flexible
a small portion of overall earnings display feasible, the contribution to earnings is limited
Duksan Already a major supplier of OLED materials to Samsung Already a main OLED material supplier for Samsung
Himetal Display Display, limited upside from flexible display transition
Glass Glass substrate to be replaced by plastic in the longer term
makers*
Panels Samsung Limited to small-sized displays, insignificant to overall Substantial potential to become major flexible display
Display earnings makers as its AMOLED line could be converted to flexible
display when materials are ready for mass production
LG Although the company should play an important role in
Display commercialising flexible display, expect an insignificant
contribution to earnings
Component LG Indirect beneficiary if LGE’s smartphone business can turn Once LGE smartphone business turns round, it is likely to
Innotek around benefit from the mobile component business with LGE
SEMCO Already a major beneficiary of Samsung’s smartphone Handset accounts for 23% of estimated 2013 total revenue
success
LED No BLU is required in flexible display (e.g., Seoul Semi)
makers*
(Battery) Samsung Product mix improvement through irregular shaped battery IT battery accounts for 64% of estimated 2013 total revenue
SDI
LG Chem Although the company is a key player in making flexible
display feasible, the contribution to earnings is limited
Equipment SFA Line conversion to LTPS OLED Additional small panel equipment orders from Samsung
Display during 2-3Q13e, given that it has to switch or extend
capacity for flexible AMOLED. Galaxy Note 3 likely to adopt
flexible OLED (unbreakable).
LTPS Line conversion to LTPS OLED from traditional LCD
equipment*
Source: HSBC estimates
*Note: Refer to the table on page 9 for the food chain
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3. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Roadmap for flexible display
Phase Available solution Time frame Product Key benefit Prototype
Plastic substrate LTPS, RGB OLED, 2Q13e Unbreakable Lighter, slimmer, given no substrate glass
Polyimde (not fully smartphone required, but no change in form factor
transparent)
Plastic substrate + LTPS, RGB OLED, 3Q13e Curved screen Lighter, slimmer and curved screen design
ultra-thin glass Polyimde, irregular type smartphone
Li-Polymer battery
Plastic substrate + LTPS, OLED, 2014e Bendable tablet, Lighter, expandable screen size
plastic front glass transparent Polyimde notebook
substrate, irregular type
Li-Polymer battery, new
plastic material
Transparent LTPS, OLED, 2015e Transparent, Transparent, rollable tablet
transparent Polyimde smartphone,
substrate, transparent tablet, monitor
battery, new plastic
material
Source: HSBC estimates
2
4. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Summary
The concept of a digital device that can be rolled up like a piece of
paper is no longer science fiction. We believe flexible display
technology will be a game changer for smartphones and tablets and
the first prototype products should be available in a few months. LG
Electronics and Samsung Electronics stand to gain the most, but the
whole vertically integrated Korean supply chain will benefit. We
upgrade Cheil Industries and SFA to OW from N and Duksan Himetal
to N(V) from UW(V). We remain OW on Samsung Electronics (an
Asia Super 10 and GEMs Super 15 portfolio stock) and OW (remove
the volatility indicator (V)) on LG Electronics and LG Innotek.
The next big thing – flexible display. Imagine a screen that is bent around the side of the phone, so you
can see data updates or messages. Then go a stage further and imagine a range of bendable, rollable and
foldable digital devices. Welcome to flexible display, the technology that is about to become commercial
reality. Flexible displays can be bent without being damaged, making it possible to create products that
are ultra-thin, almost unbreakable and flexible. The potential for this technology is substantial as the
ultimate goal is to produce cheap mass-produced digital devices that can be rolled up like paper.
We believe the introduction of flexible display will change the industry landscape. Starting with another
wave of innovation in 2H13, flexible display based on new plastic materials will evolve into bendable and
then transparent products.
This report focuses on Korean companies as they appear better placed to benefit from flexible display
than their global competitors, at least to begin with. They are at an advanced stage of development in
most of the processes needed to make this technology a reality and should also be the first to enjoy the
advantages of a vertically integrated supply chain.
Korean giants LG Electronics (LGE) and Samsung Electronics (SEC) are likely be the main beneficiaries.
The two companies are leading the way in developing this new technology (Samsung gave a sneak
preview at a recent trade show in Las Vegas) and have the capability to manufacture and release
differentiated products that will change the market.
Importantly, both have already commercialised organic light-emitting diode (OLED) technology, the base
technology for flexible display, and have established vertically integrated panel, chemical, and handset
production. LGE and SEC should lead the way in the initial stage when the flexible display technology is
first used in handsets for smartphones. LG Innotek (LGI) should benefit as a component supplier, as
should Cheil Industries and SFA as materials and equipment providers.
3
5. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Curved design smartphone concept Curved design smartphone concept
Source: HSBC Source: HSBC
All this is good news for the digital supply chain. For example, the smartphone market, which has grown
at a significant rate since the second half of 2009, is starting to mature. Aggressive new players are trying
to catch up with market leaders. Currently, all smartphones use rectangular touch screens, making it
harder to differentiate between products (see The new three “Cs” – commoditisation, concentration and
cost, 6 December 2012, and Lots of new products, little differentiation. Commoditisation accelerating,
14 January 2013). And with lower entry barriers leading to fierce price competition, sentiment has turned
gloomy as fears about lower profitability grow. Flexible display should help change that.
OLED gives established players an edge. Other than larger screen size and better resolution, there is
little room for improvement in flat display panel, which is based on light-emitting diode (LED)
technology. Top Korean LCD makers have been trying to breathe life into the industry but penetration
levels for LCD TVs are already high. LCD can’t be used in flexible display, which needs self-light
emitting material, such as OLED. Korean companies have led the development of OLED, which is
already being used in some smartphones and TVs. OLED’s faster response time and outstanding colour
definition have given the early entrants an edge as its use in high-end products also generates a margin
premium. OLED is the first step to making the commercialisation of flexible display a reality.
The challenges: 1) Customer satisfaction and good profit margins are the incentives driving the
commercialisation of flexible display. Heavy investments have already been made in LCD facilities,
which will have to be converted to produce flexible display. 2) A substitute for glass: most displays use
glass as it offers better resistance to heat, gas and moisture, and is more transparent than other materials;
but it is not flexible, so new plastic materials are needed. 3) Flexible display products need to show that
they can offer consumers added value. It remains to be seen how much of a premium companies will be
able to charge for these products. The consumer will be the judge of that.
What can we expect? We think flexible display will be fully commercialised in 2014, but some products
based on existing technology may be available much earlier. The first thin smartphones and tablet PCs
using plastic substrates could be in stores in just a couple of months, but how much added value these
prototypes will offer consumers remains to be seen. We expect competition to start to hot up in 3Q13
after the release of smartphones with curved screens made of both plastic substrate and thin glass.
4
6. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
LGE and SEC, which have vied with each other since the launch of OLED TV in January 2012, should
also compete fiercely in the flexible display smartphone market. In 2H13, SEC is likely to start offering
flexible display in its Galaxy Note 3 and LG Electronics in its Optimus G2 models, with possible volumes
of 10-15m and 5-10m, respectively. This would mean that by the end of the year flexible display could
represent 5% of the global smartphone market and 15% of high-end smartphones in 2H13. These models
are all high end, so the impact on earnings will be visible at an early stage. The first models will still use
glass in the outer layer of the curved screen, so won’t be completely flexible. However, by 2014 plastic
film will be available and the new products will represent a revolutionary change in the smartphone,
notebook and tablet industry.
Flexible display market forecasts Samsung’s OLED sales and OPM forecasts
(USDmil) LCD OLED E-ink Others 25,000 25%
10,000
20,000 20%
8,000
15,000 15%
6,000
10,000 10%
4,000
5,000 5%
2,000
0 0%
0 2010 2011 2012 2013e 2014e
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
OLED rev enue (USDmil) OPM (RHS)
Source: Display Search, HSBC estimates Source: HSBC estimates
5
7. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Bendable display conceptual picture Bendable display conceptual picture
Source: HSBC Source: HSBC
Market prospects. We expect two important technological steps to be taken next year. First, an
evaporation process on top of plastic substrates will simplify the manufacturing process, leading to mass
production. We also expect transparent plastic to replace the frontal glass of curved screens. This will
broaden the scope of flexible display’s applications from pilot products, such as two-inch watches and
five-inch curved screens, to commercial 5-8 inch tablets and 13-15 inch notebooks. When this happens,
the size of the flexible display market size will increase substantially.
Given the scale and pace at which Samsung Display is converting some of its OLED facilities to flexible
lines, we estimate the market could be worth USD6bn by 2015. Much will depend on how fast new
materials and processes can be developed. While demand for prototype flexible display products, such as
watches and small curved screen is likely to be limited, we expect the market to start taking off when SEC
and LGE launch flexible display Galaxy Note 3 and Optimus G smartphones later this year.
Development of OLED display vs. flexible display
OLED TV Flex ible display
④ Mass production
for OLED TV
③ Penetration of ③Penetration of
② Introduction of
new play ers new play ers
① Technological prototy pe through ② Introduction
improv ement pilot line ①Technological of prototy pe
improv ement
2011 2012 2013 2014 2015 2016
Source: HSBC estimates
6
8. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Impact from flexible display
Food chain Name Impact Description
Handset and Samsung Handsets account for 51% and 64% of Flexible display could help to sustain its dominance in the high-end
panel Electronics sales and operating profit in 2013e, smartphone segment
respectively
Samsung OLED panels account for 6.8% and Substantial potential to become a major flexible display maker as its
Display 9.1% of sales and operating profit in AMOLED line could be converted to flexible display when materials
2013e, respectively are ready for mass production
Handset LG Electronics Handsets account for 23% and 30% of Flexible display could be a key differentiating factor in high-end
makers sales and operating profit in 2013e, smartphones and help to improve ASP and margin. Revise up 2013e
respectively handset margin assumption from 1% to 3%
Materials LG Chem Plastic substrate and Li-Polymer Although the company is a key player in making flexible display
battery take <1% and 6% of total sales feasible, the contribution to earnings is limited
in 2013e
Cheil Industries Electronics Chemical Material (ECM) OLED business drives ECM division growth as it expects to take 24%
business accounts for 29% of 2013e of ECM revenue in 4Q15e, up from nothing in 4Q12
sales
Duksan OLED materials account for 71% of Already a main OLED material supplier for Samsung Display, limited
Himetal 2013e sales upside from flexible display transition
Component LG Innotek Mobile component business accounts Once LGE’s smartphone business turns around, it is likely to benefit
for 60% of 2013e sales from the mobile component business with LGE
SEMCO c50% of sales is from Samsung Already a major component supplier to Samsung Electronics, the
Electronics incremental benefit from flexible display could be limited
Panel LG Display G6 LTPS fab is to be converted to Although the company will likely play an important role in
flexible OLED, it accounts for 6% of commercialising flexible display, expect insignificant contribution to
total output capacity earnings
Equipment SFA 57% of 2013e sales is related to OLED Additional small panel equipment orders from Samsung Display
manufacturing equipment (back-end during 2-3Q13e, given that it has to switch or extend capacity for
and logistics) flexible AMOLED. Galaxy Note 3 will mostly likely adopt flexible OLED
(unbreakable)
Source: HSBC estimates
The winners. We believe vertical integration is essential to fully commercialise flexible display for the
following reasons: 1) Although individual panel and materials companies are capable of solving
technological issues, the supply chain needs to be tested by the rigours of mass production; 2) We think
flexibility on pricing throughout the supply chain is also essential, especially in the early stages. TV set
makers have a “40% premium rule” for TV products but set prices lower when they launched LED and
ultra-high definition TV. They will probably have to adopt the same tactics for flexible display as
customers assess these new products. 3) A whole range of new components will be needed to meet the
requirements of flexible display (for example, a completely new shaped battery will have to be designed).
Korean handset makers that stand to benefit most at first as they have an opportunity to grow their market
share on the back of these new and highly differentiated flexible display products. It’s certainly a
substantial opportunity for LGE, which is experiencing a slump in its smartphone business. The
company’s market share is only 5%, but we believe this can rise to 7-8% in 2014. Samsung Electronics,
the leader in the smartphone handset market, can use flexible display to further strengthen its position.
We believe these two companies have a head start on their global handset rivals because they already a
vertically integrated supply chain in place. For example, we think flexible display will be difficult to
commercialise for Apple, given the large size of its orders and a lack of capacity in the industry.
Meanwhile, it may take Nokia and HTC some time to introduce flexible display products as organising
the supply chain is likely to be a lengthy process.
We believe LG Innotek (LGI) will be one the biggest indirect beneficiaries of the flexible display trend.
For example, if LGE’s handset business improves, LGI will supply it with most of the handset
7
9. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
components – touch screen, PCB, and camera modules. LGI also holds the key to developing the required
flexible components (e.g. flexible PCB) when curved design is introduced. This will strengthen the
relationship between LGI and LGE. What’s more, LGI is developing a transparent electrode, essential for
transparent display in the longer term. We also believe Cheil Industries will have the largest upside risk in
the mid to long term as the company can co-operate with Samsung Display to develop core technologies
required for flexible display. This is Cheil’s differentiating factor and is expected to drive revenue growth
at its electronic material division.
It’s also good news for equipment makers. Starting in 3Q13, Samsung Display and LG Display are
expected to expand capacity by converting existing LCD fabs to plastic OLED to maximise investment
efficiency. As a result, SFA, Samsung Display’s equipment makers, is expected to benefit.
Our preferred stocks among handset makers are Samsung Electronics and LG Electronics, while we
prefer Cheil Industries, LG Innotek, and SFA among component, materials and equipment providers. We
upgrade Cheil Industries and SFA to OW from N and Duksan Himetal to N(V) from UW(V). We remain
OW on Samsung Electronics (an Asia Super 10 and GEMs Super 15 portfolio stock) and OW (remove
the volatility indicator (V)) on LG Electronics and LG Innotek.
Summary of ratings and target price changes
LG Electronics Cheil Industries LG Innotek SFA Samsung LG Display LG Chem Duksan Himetal
Electronics
Stock Code 066570 KS 001300 KS 011070 KS 056190 KS 005930 KS 034220 KS 051910 KS 077360 KS
Market Cap (KRWbn) 13,042.7 4,415.3 1,567.3 1,086.2 221,980.1 11,181.7 18,257.7 806.8
Rating Reiterate OW Upgrade to OW Reiterate OW Upgrade to OW Reiterate OW Reiterate OW(V) Reiterate OW(V) Upgrade to N(V)
from N from N from UW(V)
Target Price (KRW) 116,000 108,000 108,000 75,000 2,000,000 51,500 365,000 31,700
Previous TP (KRW) 104,000 98,000 108,000 56,000 2,000,000 51,500 365,000 17,500
Current Price (KRW) 80,000 92,500 85,700 62,400 1,521,000 31,150 251,000 26,850
Diff to TP 45.0% 16.8% 26.0% 20.2% 31.5% 65.3% 45.4% 18.1%
PE 2012a 215.7x 22.4x -69.1x 14.9x 9.6x 48.5x 11.8x 16.1x
2013e 11.4x 14.3x 36.8x 11.1x 7.1x 5.4x 9.2x 14.2x
PB 2012a 1.2x 1.4x 1.4x 2.9x 1.9x 1.1x 1.5x 3.7x
2013e 1.1x 1.3x 1.3x 2.4x 1.5x 0.9x 1.3x 2.9x
ROE 2012a 0.5% 6.4% -1.9% 19.6% 22.3% 2.3% 14.1% 26.1%
2013e 9.7% 9.6% 3.6% 23.3% 23.9% 18.8% 15.9% 23.1%
EPS 2012a 371 4,124 -1,240 4,175 158,228 642 21,281 1,665
2013e 7,044 6,458 2,330 5,611 214,645 5,746 27,138 1,891
BVPS 2012a 69,166 64,329 62,895 21,838 806,096 28,619 163,890 7,253
2013e 75,959 70,041 65,226 26,249 1,028,740 34,438 185,941 9,144
Source: Bloomberg, HSBC estimates; Priced as of 3 April 2013
8
10. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
OLED/Flexible display food chain
Category Component Name Description Suppliers
TFT Glass Mother glass Base glass to apply TFT circuit NEG (NEG US)
Corning (GLW US)
Plastic substrate Polyimide film Plastic film to apply on TFT glass LG Chem (051910 KS)
Cheil Industries (001300 KS)
Nippon Steel Chemical Corp (5401 JP)
Circuit Surface mount Flexible printed circuit board Flexible plastic board with complex of circuit ACT (unlisted)
device
MLCC Multi-layer ceramic condenser Multiple layer of ceramic condenser to control power SEMCO (009150 KS)
between chip on the circuit board Murata (6981 JP)
OLED Common Layer HIL, HTL, ETL, EIL Layer to transfer electrons UDC (PANL US)
Idemitsu Kosan (5019 JP)
LG Chem (051910 KS)
Cheil Industries (001300 KS)
Doosan Electronics (unlisted)
Emission Materials Fluorescence materials, Self-illuminating material when electric power is UDC (PANL US)
Phosphorescence materials applied Idemitsu Kosan (5019 JP)
Kodak (unlisted)
Evaporation RGB LTPS Equipment to use low temperature laser base Tokki (7751 JP)
evaporation process AP System (054620 KS)
ULVAC (6728 JP)
White OLED Sputtering equipment AVACO (083930 KS)
Encapsulation Sealant Paste to stick upper glass and bottom glass in TFT Three Bond
LG Chem (051910 KS)
Cheil Industries (001300 KS)
Frit seal Glass pounder to be used as adhesive paste Yamato (9064 JP)
Corning (GLW US)
Face seal Apply adhesive seal in order to bind upper and Three Bond (unlisted)
bottom glass AVACO (083930 KS)
LIG ADP (079950 KS)
PECVD chamber Vacuum chamber for face seal process Jusung Eng(036930 KS)
Source: HSBC
9
11. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Contents
Introduction to flexible display 11 Company section 39
Why flexible display is important 11 LG Electronics (066570 KS) 40
Flexible display: market prospects 13 Cheil Industries (001300 KS) 43
LG Innotek (011070 KS) 46
Key success factors 16 Samsung Electronics (005930 KS) 48
1: Re-using LCD fabs 16
LG Display (034220 KS) 50
2: A substitute for glass 16
LG Chem (051910 KS) 52
3: Plastic to replace frontal glass 18
SFA (056190 KS) 54
4: Vertical integration 18
Duksan Himetal (077360 KS) 56
What to expect near term 20
Disclosure appendix 69
Who benefits from flexible
display? 24 Disclaimer 72
Implications for non-Korean
players 26
Technology overview 29
Technology overview 30
Introduction 30
Patent trends 36
10
12. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Introduction to flexible
display
Flexible display will improve the user experience for mobile
devices by increasing design options
Materials, evaporation and encapsulation are the key to mass
production
Korean companies are leading the way in technological advances
Why flexible display is and CDMA combined to form WCDMA or 3G. Brian Sohn*
Analyst
important The market became more operator-driven as The Hongkong and Shanghai
telecom companies used a variety of marketing Banking Corporation Limited,
The era of mobile devices began in the second Seoul Securities Branch
methods, including providing customers with +822 3706 8765
half of the 1990s. As cell phones became widely subsidies and two-year contracts. briansohn@kr.hsbc.com
used, the market for mobile equipment grew at a Ricky Seo*
rapid rate. The main area of competition was in By the second half of 2005, most phones had Analyst
The Hongkong and Shanghai
making devices smaller and improving call similar design and functions (camera, colour Banking Corporation Limited,
display, 3G) and with differentiation becoming Seoul Securities Branch
quality. Once the ideal size and call quality was +822 3706 8777
achieved it became harder to differentiate the more difficult, commoditisation started and rickyjuilseo@kr.hsbc.com
competitors focused on lowering production costs. Jerry Tsai*
products in the early 2000s.
Analyst
HSBC Securities (Taiwan)
As a result, companies started competing to Corporation Limited
develop simple wireless telecom devices and +8862 8725 6023
jerrycytsai@hsbc.com.tw
added value for customers by offering colour
*Employed by a non-US
display, MP3 and camera functions. The affiliate of HSBC Securities
landscape of the market changed quickly as GSM (USA) Inc, and is not
registered/ qualified pursuant
to FINRA regulations
The history of the handset industry
Time frame Technology Key application
1990s 2G Voice quality, ring tone, MP3, slimmer form factor
2000 Colour screen, dual display, longer battery life
2002-03 Active matrix colour display, number portability, CDMA
2004-05 3G 3G, operator-driven subsidy programme, data download speed
2005-08 Cost competitiveness in commoditised market, design differentiation
2008-10 Smartphone, application store, eco-system
2010-11 Android smartphone eco-system, multi-core application processor
2012-13 LTE LTE, size and resolution of display
2013e Design differentiation (flexible display)
Source: HSBC estimates
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13. Telecoms, Media & Technology
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8 April 2013
After 2005, competitors turned their attention to Differentiation has become even harder with most
making cell phones essential in everyday life. As a companies using full HD panels, a standardised
result, products with differentiated form factors, quad-core application process, touch screen and
such as casing, keypad and slim form factor, were the Android operating system. In a commoditised
designed. The market for high-end phones started market, design is the high-end market’s main
to take off. Consumer interest in design was an differentiating point. We believe flexible display
opportunity for Samsung and LG to strengthen will take this to a new level as the new technology
their positions in a market dominated by cost- will see hand-held digital devices become lighter,
efficient companies, such as Nokia. thinner and more convenient for users.
Then Apple’s iPhone arrived, providing completely Display technology is advancing in four
new experiences, such as entertainment features directions: 1) improving the sense of reality
and a highly distinctive design and customisation through 3D TV, 2) adopting additional functions,
options. The handset market went through rapid such as touch and internet connectivity,
change as Wi-Fi internet revolutionised the data 3) enabling greater mobility via lighter and
side of the business. Apple was the dominant force thinner products, such as in smartphones and
until the advent of Android-based phones. tablet PCs, and 4) expanding adaptability for
displays in homes and industries via thinner,
larger products, such as UHD TV.
Until recently, progress on flexible display
technology has been slow. The main reason is that
companies have already made heavy investments
in LCD, the technology used in flat display
panels. Flexible display requires a completely
Display development
Realism
Multifunction
High Performance
High Performance
Glassless 3-D
Transparent
Lightening & Super-thinning
Lighting
Communication
Projection 3-D
Flexible
Touch Screen Bendable
Thinning & Enlarging
3D Glass
Digital signage
FHD TV, OLED TV
LCD, PDP
LCD
Thin-Large Plastic
Glass Monitor 2003 2008 2013 2020
Glass
Convenience
Source: KEIT, HSBC
12
14. Telecoms, Media & Technology
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8 April 2013
Characteristics of flexible display
Information
Technology Thin and light; change of shape and production possible according to need, and unbreakable
Variety of organic materials, such as semiconductors and insulators.
Low production cost as manufacturing at room temperature and atmospheric pressure is possible
Business Instead of simply substituting existing display industry, it has the potential to create market and new application areas
Future value-oriented technology.
Technology makes low-cost start-up costs possible
Technology that is not dominated by any country or company
Source: HSBC
different set of technologies, the first of which is In the early stages, flexible display will be used in
OLED display, which has a faster response time small displays, such as watches, which can be
and outstanding colour definition. mass produced. Then, depending on how the
technology matures, it will be applied in
OLED is the base technology for flexible display
smartphones and tablets.
because of its self-illuminating properties that
allows greater design flexibility. Samsung Display Flexible display: market
has made rapid progress in OLED technology and prospects
is already using it its smartphones. LG Display
We expect the flexible display market to develop
recently commercialised large TV displays using
along similar lines as the OLED TV market. As
this technology.
we explained in our report LG poised to take
Flexible display uses plates that are pliable and as lead in AMOLED TVs, January 2012, it is a four-
thin as paper. They can be bent without being step process.
damaged, making it possible to create products
Establishing a stable base for the technology
that are thin, durable and flexible. The potential of
(there was an early dispute between LG and
this technology is substantial as the ultimate goal
Samsung over different types of OLED)
will be cheap digital devices that can be rolled up
like paper. Commercialisation based on pilot production
lines and market reaction
Development of OLED display vs. flexible display
OLED TV Flex ible display
④ Mass production
for OLED TV
③ Penetration of ③Penetration of
② Introduction of
new play ers new play ers
① Technological prototy pe through ② Introduction
improv ement pilot line ①Technological of prototy pe
improv ement
2011 2012 2013 2014 2015 2016
Source: HSBC estimates
13
15. Telecoms, Media & Technology
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8 April 2013
Entry of new players, including Japanese and resolution mobile display, to produce plastic display.
Taiwanese companies Samsung Display has already obtained two OLED
lines and may convert more capacity; it is also
Capex investment by LG and Samsung to
working on a hybrid line that can produce both glass
enable mass production
and plastic OLED. How quickly new lines can be
The commercialisation of flexible display is adapted or expanded will depend how soon the
expected to proceed in a similar manner. We think necessary materials can be developed.
that prototype products will be introduced by
Large-scale production in unlikely in 2H13 as not
Samsung and LG and the start of mass production all the technical systems are in place (e.g., it is not
will be dictated by a variety of factors, including yet possible to apply the evaporation process to
technology, market response and cost. Samsung plastic substrate). However, we do expect a pilot
Display and LG Display are both expected to start facility to produce prototype 2” watch and 5”
small-scale flexible display manufacturing in the curved displays.
next few months.
Things are moving fast and Samsung and LG are
The debate about which is the best OLED likely to be able to apply flexible display
technology has yet to be resolved. When large- technology to their respective Galaxy Note 3 and
size OLED panel production started in early 2012 Optimus G2 models before the end of the year.
the two companies adopted different strategies
We expect demand in 2H13 to be about 25m and
when they set up pilot production lines.
take up about 5% of the smartphone market. If our
LG Display plans to invest KRW700 billion in a assumptions are correct, flexible display models
G8 White OLED facility, while Samsung Display could capture 15% of the high-end smartphone
appears to have a two-track strategy, developing market by the end of the year.
both White OLED and RGB technology for high-
The impact on profitability will depend on
end products. For more details on OLED
generating decent yield on OLED, which may not
technology, please see LG poised to take lead in
happen until next year at the earliest. At the
AMOLED TVs, 6 January 2012.
moment, because of the additional technical steps
We believe LG Display is contemplating converting required, production costs are higher than for
a G6 LTPS line, which currently makes high- LCD. We expect them to fall considerably once
Flexible display market forecasts Samsung’s OLED sales and OPM forecast
(USDmil) LCD OLED E-ink Others 25,000 25%
10,000
20,000 20%
8,000
15,000 15%
6,000
10,000 10%
4,000
5,000 5%
2,000
0 0%
0 2010 2011 2012 2013e 2014e
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
OLED rev enue (USDmil) OPM (RHS)
Source: Display Search, HSBC estimates Source: Company data, HSBC estimate
14
16. Telecoms, Media & Technology
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8 April 2013
the evaporation process can be applied to plastic
substrate. This should happen next year, along
with other technical breakthroughs, such as the
development of transparent plastic that can
replace the front glass.
Once these are in place, flexible display will be
expanded from watches and small screens to 5-8
inch tablets and 13-15 inch notebooks. The
market should then really start to take off and we
forecast it will be worth up to USD6bn by 2015
and USD8bn in 2018.
However, it remains to be seen how much of a
premium companies will be able to charge for these
products. The consumer will be the judge of that.
15
17. Telecoms, Media & Technology
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8 April 2013
Key success factors
Companies must convert existing LCD fabs to flexible display for
investment efficiency
Plastic material is needed to replace glass
Vertical integration – from material providers to handset
manufacturers – is important
The commercialisation of flexible display will a head start on their Japanese and Taiwanese
depend on technology, mass production and cost. competitors in the flexible display market. We
We identify four key challenges. expect the LTPS-based RGB OLED technology –
already being used by Samsung Display in its high-
1: Re-using LCD fabs definition OLED small-size panel production – to
LCD panel businesses already make a wide range become the industry standard for flexible display.
IT products and TVs. Making sizeable new
investments could be a burden as profitability has
2: A substitute for glass
been declining due to oversupply. It will make Glass is currently used in the upper and lower
more sense for these companies to convert layers of LCD and OLED panels. The reason is
existing LCD business lines to OLED to produce simple – it is flat, transparent and resistant to heat
flexible display. and moisture. However, glass has low levels of
elasticity, making is unsuitable for flexible display.
Samsung Display and LG Display have already
made substantial investments in OLED, giving them
Comparison of technologies involved in flexible display production
Process Technology Advantages Disadvantages
Backplane a-Si Cost competitiveness is high because most of existing Low mobility
LCD equipment can be re-used
Oxide More advanced than a-Si with the better mobility Applicability is uncertain due to low stability and low
suitable for OLED, applicable in large-sized OLED yield for mass-production
panels and high-resolution panels
LTPS Most suitable for flexible display: 1) Sufficient mobility Equipment is expensive
is feasible, 2) plastic can be easily utilised as it can be
manufactured in a low-temperature environment
Evaporation / LED Can’t be applied in flexible display
Deposition Backlight
White OLED Can be applied in large-sized panel production Has limitations to be used in flexible display because
it needs other layers, such as colour filters
RGB OLED Safest technology depositioning RGB colour in each
cell; colour implementation is excellent on flexible
surface
Source: HSBC
16
18. Telecoms, Media & Technology
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8 April 2013
Next-generation plastic looks like the best
substitute. Currently, it can be used in high-
performance thin transistors as its thermal
expansion coefficient is low. However, this is
expensive and not efficient due to its opaqueness.
However, on the plus side a wide range of
materials can be applied in plastic. Research is
being done on materials with high thermal
resistance, such as PET (Polyethylene
Terephthalate), PC (Polycarbonate), PES
(Polyether Sulfone), PI (Polyimide) and how
plastic boards can withstand the process of
thinning (see table on the next page).
We believe polyimide plastic film is most
compatible with flexible display since polyimide
provides the highest thermal resistance. Polyimide
is a transparent polymer material that has a
relatively low degree of crystallisation and an
amorphous structure. Moreover, it is an excellent
mechanical material and provides outstanding
heat and chemical resistance, electric
characteristics and stable size based on a rigid
chain structure. It is widely used in auto, aviation,
aerospace and flexible circuit boards.
Despite its advantages in being applicable in
insulating material, flexible film, and aerospace
aviation, polyimide is partially used in FPCB
(flexible printed circuit board) and costly displays
within aeroplanes due to its unique yellow colour;
efforts are being made to lower this yellow colour
and raise transparency. The result of this work,
polymer, is likely to be in use in 2014.
17
19. Telecoms, Media & Technology
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8 April 2013
3: Plastic to replace frontal 4: Vertical integration
glass Some Japanese companies have already
Conditions of plastic substrates vs. physical characters of glass developed technologies for the commercialisation
Plastic Glass of flexible display and have even introduced some
substrate prototypes. However, they are being produced by
Glass transition temperature >250˚C Melting point of a single company, so there is a lack of
Heat deflection temperature 20 ppm/C 1600˚C
Gas transmittance <1,000/m2 day O competition in cost and mass productivity.
Yellow index <5 O
Flexibility O X While a number of technological issues still need
Source: MOTIE, HSBC
to be resolved by individual material and panel
companies, we believe that vertical integration
Frontal glass needs to be more scratch proof than
among material developers, components and
the lower glass panel. A plastic substitute would
panel producers, and handset makers is essential
need to have the same hardness as glass, but this
for the commercial success of flexible display.
technology is still at an early stage. Some
Given the newness and complexity of the
Japanese companies are making progress in this
technology, co-operation among the companies in
area, but the cost is much higher than tempered
the supply chain, especially in the early stages of
glass, making commercialisation difficult.
mass production, will be important.
We think flexibility on pricing is also essential.
Manufacturer info and pros and cons of plastic substrates
Pros Cons Manufacturer
PET Strong UV resistance MD vs. TD direction optical anisotropy General Atomics
(polyethylene Excellent chemical-resistant Weak temperature safety (USA)
terephthalate) Low moisture hygroscopicity (over 24h, 0.1%) Gets murky due to partial recrystallisation after thermal Mitsubishi
process Chemical
High CTE (20~80x10-6/K) (Japan)
Production room temperature (~130C)
PEN Chemical-resistant Optical anisotropy Dupont Teijin
(polyethylene Low CTE (~20x10-6/K) Weak heat resistance Film (Japan)
naphthalate ) Low cost Production room temperature (~130C)
PC Good optical characteristic Weak chemical-resistance Dupont Teijin
(polycarbonate) Good mechanical characteristic High CTE (60~70x10-6/K) Film (Japan)
Easy to purchase Low production room temperature (~150C) GE (USA)
Weak UV resistance Mitsubishi
(Japan)
PES (polyether UV resistance High moisture hygroscopicity (over 24h. 0.4~1.0%) i-Component
sulfone) Easy to purchase High CTE (55x10-6/K) (Korea)
High cost Sumitomo
Weak chemical-resistance Bakelite (Japan)
Production room temperature (~180C)
PI (polyimide) Excellent chemical resistance High moisture hygroscopicity (over 24. 0.2~2.9%) DuPont (USA)
Production room temperature (>200C) CTE (50~60x10-6/K) Mitsubishi Gas
UV resistance Coloured board (dark yellow) (Japan)
Easy to purchase Low transparency LG Chem
(Korea)
Cheil Industries
(Korea)
AryLite Excellent heat-resistance Weak UV resistance Ferrania Image
Production room temperature (~200 C) High (50_60x10-6/K) System (Italy)
Good optical characteristic
Linear CTE change characteristic
Source: MOTIE, HSBC estimates
18
20. Telecoms, Media & Technology
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8 April 2013
Handset makers have a “40% premium rule” for
TV products, but set prices lower when they
launched LED and ultra-high definition TVs.
They will probably have to adopt the same tactics
for flexible display as customers assess these new
product lines.
Components will also have to change to meet the
design requirements of flexible display. For
example, different shaped batteries are being
developed to fit behind curved screens.
All in all, we believe vertically integrated
companies including the Samsung Group
(Samsung Electronics, Samsung Display, Cheil
Industries, SEMCO, Samsung SDI) and LG
Group (LG Electronics, LG Chem, LG Display,
and LG Innotek) are better placed to develop
flexible display than peers in Taiwan and Japan.
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21. Telecoms, Media & Technology
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8 April 2013
What to expect near term
Unbreakable backplane with curved design could be a killer
application in 2H13
Bendable tablets to boost smartphone/notebook demand in 2014
Fully transparent display may take three years
The OLED technology needed to make prototype PI is already used widely in electronic materials,
flexible display products has already been so the basic structure of flexible display can be
developed by Samsung Display and LG Display. made by coating the OLED luminous layer on top
However, given it will be a gradual process – this of the polyimide-coated lower glass. After this
is how we see events unfolding. process is complete, a plastic OLED structure can
be achieved by removing the lower glass.
Phase 1: Unbreakable display for
Although it is not perfectly transparent, the lower
2Q13
glass will have a plastic finish.
Technology using LTPS, RGB OLED, opaque
PI (Polyimide) substrate Removing the lower glass can make the display
much slimmer, lighter and durable. However, it
LTPS backplane and RGB OLED technology are
will not be completely unbreakable as the upper
suitable for producing flexible products. Many
glass would still be used. A thinner display will
LCD businesses already produce IT equipment,
mean thinner smartphones and tablets.
such as smartphones, tablet PCs and high-
resolution displays. This will help reduce costs. We expect further progress to be made on using
polyimide film technology in flexible display
production in the next few months.
Structure of OLED and unbreakable display
plastic display
5 um SiN passivation ITO Pixel
TFT Uppe
polyimide layer r glass
Upper glass
0.7 mm thick glass substrate Lower glass
Lower glass
Glass substrate with spin Back Channel Etch a-Si TFT
coated polyimide and SiN made on a glass/polyimide
passivation layer. substrate
Source: HSBC
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22. Telecoms, Media & Technology
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8 April 2013
Curved design smartphone design Curved design smartphone design
Source: HSBC Source: HSBC
Phase 2: Unbreakable backplane with Phase 3: Bendable, true plastic
curved design in 3Q13 display in 2014
Technology based on LTPS, RGB OLED, PI Technology based on LTPS, RGB OLED, and
substrate, and thin glass translucent PI substrate
Curved design is one of the great attractions of Once polyimide enters mass production, we
flexible display. We expect the first products to be expect flexible display technology to develop
small two-inch displays, such as watches and car rapidly. An improved polyimide material is likely
instruments, where resolution quality is less to be introduced in 2014, which will lead to the
demanding. Larger curved displays will require an commercialisation of products with displays of
unbreakable backplane and will involve the same over five inches, such as tablets and notebooks.
technology as described in phase one. Bendable display requires the following
procedures: 1) coat polyimide film to the upper
and lower glass panels, 2) OLED manufacturing
procedure to build luminous layer; and 3) separate
upper and lower glass panes. Once bendable
display is commercialised, we expect to see
products that can be bent to an angle of less than
90 degrees.
Irregular type Li-polymer battery Stepped Li-polymer battery
Curved display Curved display
Irregular type Li- Stepped Li-polymer
polymer battery battery
Source: HSBC Source: HSBC
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23. Telecoms, Media & Technology
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8 April 2013
Bendable display conceptual picture Bendable display conceptual picture
Source: HSBC Source: HSBC
Phase 4: Transparent display in 2015 Phase 5: True flexible display
Technology based on LTPS, RGB OLED, and Current technology does not allow for truly
transparent PI substrate flexible display products that are totally
We believe transparent polyimide will be available transparent and can be rolled up. How quickly the
from 2014, but it may take at least a year to enter technology develops remains to be seen – for
commercial production. A lot of technological example, bendable batteries are needed – and how
challenges remain, including how to make much added value will be created for consumers
transparent batteries. We think the first products to is also unknown at this stage.
be partially transparent, as progress will depend on
the response from the public. How much demand
will there be for transparent devices?
Curved design smartphone design Transparent display conceptual picture
Source: HSBC Source: HSBC
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24. Telecoms, Media & Technology
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8 April 2013
Transparent display concept Transparent display concept
Source: HSBC Source: HSBC
Comparison of TFT backplanes
a-Si Oxide LTPS
Source Drive
Drain Overcoat
Electrode Electrode
Electrode Etching
Stopper
a-Si (N+)
a-Si a-IGZO
Gate Insulator
Gate Electrode p-Si (N+) p-Si
Glass Substrate Glass Substrate
Glass Substrate
Mobility Fair Average Very good
Scalability G3~G10 G8 or larger Up to G8
Availability Very good Average Good
Advantages Low cost Scalability, Good uniformity Superior mobility, stability
Good track record
Weakness Low mobility Low cost Low scalability
Source: HSBC estimates
23
25. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Who benefits from
flexible display?
LGE and SEC are expected to benefit the most
Their major suppliers, LG Innotek and Cheil Industries, are also
well positioned
SFA has an opportunity to benefit from converting and expanding
Samsung’s production lines
We believe flexible display will have a positive grow their market share on the back of these new
impact on the overall display industry because it and highly differentiated flexible display
will create a new line of business. We expect new products. It’s certainly a substantial opportunity
product shapes and designs to revitalise the slowing for LGE, which is experiencing a slump in its
notebook market. Smart watches, previously smartphone business. The company’s market
considered a niche market, should also benefit. share is only 5%, but we believe this can rise to 7-
8% in 2014. Samsung Electronics, the leader in
We are convinced that a vertically integrated
the smartphone handset market, can use flexible
industry structure that includes materials, panels and
display to further strengthen its position.
handsets is essential to commercialise flexible
display. This involves: We believe LG Innotek (LGI) will be one the
biggest indirect beneficiaries of the flexible display
Re-using existing LCD equipment
trend. For example, if LGE’s handset business
Co-operation between handset makers and improves, LGI will supply most of handset
material providers to obtain a decent yield components – touch screen, PCB, and camera
from mass production modules – to LGE. LGI also holds the key to
developing the required flexible components (e.g.,
Set makers fully utilising flexible display to
flexible PCB) when curved design is introduced.
maximise added value and secure sales capacity
This will strengthen the relationship between LGI
Samsung Electronics and LG Electronics have the and LGE. Moreover, LGI is focusing on
technological advantages to lead industry as both developing a transparent electrode, essential for
have already commercialised OLED panels that transparent display in the longer term.
are generating stable yields.
We also believe Cheil Industries will have the
We believe it’s the handset makers that stand to largest upside risk in the mid to long term as the
benefit most at first as they have an opportunity to company can co-operate with Samsung Display to
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26. Telecoms, Media & Technology
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8 April 2013
develop core technologies required for flexible
display. This is Cheil’s differentiating factor and
is expected to drive revenue growth at its
electronic material division.
It’s also good news for equipment makers.
Starting in 3Q13, Samsung Display and LG
Display are expected to expand capacity by
converting existing LCD fab to plastic OLED in
order to maximise investment efficiency. As a
result, SFA, Samsung Display and related
equipment makers are expected to benefit.
Our preferred stocks among handset makers are
Samsung Electronics and LG Electronics, while
we prefer Cheil Industries, LG Innotek, and SFA
among component, materials and equipment
providers. We upgrade Cheil Industries and SFA
to OW from N and Duksan Himetal to N(V) from
UW(V). We remain OW on Samsung Electronics
(an Asia Super 10 and GEMs Super 15 portfolio
stock) and OW (remove the volatility (V)
indicator) on LG Electronics and LG Innotek.
HSBC estimate vs. Consensus
(KRWbn) _________ HSBCe __________ _______ Consensus ________ _______ % Difference _______
2013e 2014e 2013e 2014e 2013e 2014e
LG Electronics Sales 60,769 64,901 54,519 57,862 11.5% 12.2%
OP 1,686 1,946 1,483 1,892 13.7% 2.9%
OP margin 2.8% 3.0% 2.7% 3.3% 0.1%pt -0.3%pt
LG Innotek Sales 5,939 6,598 6,015 6,588 -1.3% 0.2%
OP 157 250 128 228 22.0% 9.5%
OP margin 2.6% 3.8% 2.1% 3.5% 0.5%pt 0.3%pt
Cheil Industries Sales 6,788 7,368 6,789 7,521 0.0% -2.0%
OP 415 501 422 512 -1.6% -2.2%
OP margin 6.1% 6.8% 6.2% 6.8% -0.1%pt 0.0%pt
Samsung Electronics Sales 225,668 245,350 238,686 264,048 -5.5% -7.1%
OP 39,182 41,939 39,388 43,038 -0.5% -2.6%
OP margin 17.4% 17.1% 16.5% 16.3% 0.9%pt 0.8%pt
LG Display Sales 33,560 34,567 31,349 33,274 7.1% 3.9%
OP 2,362 2,755 1,384 1,553 70.7% 77.4%
OP margin 7.0% 8.0% 4.4% 4.7% 2.6%pt 3.3%pt
LG Chem Sales 25,243 28,347 24,791 26,611 1.8% 6.5%
OP 2,693 3,213 2,299 2,686 17.1% 19.6%
OP margin 10.7% 11.3% 9.3% 10.1% 1.4%pt 1.2%pt
SFA Sales 771 979 694 842 11.1% 16.3%
OP 109 137 93 116 17.9% 17.3%
OP margin 14.1% 14.0% 13.3% 13.8% 0.8%pt 0.1%pt
Duksan Himetal Sales 189 251 171 213 10.9% 17.5%
OP 47 66 48 61 -2.2% 7.9%
OP margin 25.0% 26.2% 28.3% 28.6% -3.4%pt -2.3%pt
Source: Bloomberg , HSBC estimate
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27. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Implications for non-
Korean players
Samsung and LG should enjoy early-mover advantage because of
their advanced technology in flexible display
Taiwan players are already strong in electronic paper and waiting
for OLED technology to stabilise
Apple is behind at the moment, but should catch up by 2015
Flexible display uses OLED as its basic Two Taiwan companies, AU Optronics and
technology, giving companies like Samsung and Innolux, are actually further advanced in one area
LG, which have already commercialised the of flexible display technology than the Korean
process, an early-mover advantage. They probably companies – electronic paper (EPD) – which is
have a 2-3 year head start. Taiwanese and commonly used in e-books. For example, they
Japanese panel makers believe that OLED have made excellent progress in terms of
technology is not mature yet, so they have not production yield (see E Ink: Initiate OW(V): The
invested much in mass production, although they year of recovery, 18 March 2013).
are investing in R&D.
Comparison between flexible colour EPD and flexible OLED
Flexible colour EPD Flexible OLED
Advantages Similar to a piece of paper Self-light emitting -> No need of external light source
Consumes electricity only when changing page Able to generate natural colour and image
Wide viewing angle Fast reaction speed
Easy to mass produce with simple manufacturing processes Wide viewing angle
Disadvantages Mirror reflection type -> requires external light source High cost from organic EL
Difficult to generate natural colour Requires high-end TFT
Difficult to play movie due to slow reaction speed Difficult to mass produce due to complicated manufacturing
processes
Source: HSBC estimates
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28. Telecoms, Media & Technology
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8 April 2013
The downside is that e-paper does not have self- emphasises the importance of platform efficiency
illuminating properties and must be viewed under in mass producing one innovative product rather
an external light source. It also uses a colour filter, than going into a variety of product line-ups.
so it has limited ability to generate natural colours Therefore, it may be some time before Apple
and also has a fairly low rate of response, which is commits a lot of resources to flexible display.
not compatible with showing video clips.
Apple’s “wrap-around” display
This is why OLED is considered to be the solution
for the next generation of flexible display. Taiwan
panel makers already have a G3.5 pilot production
line to manufacture small-sized OLED panels, and
a conversion from LTPS to OLED line is being
seriously considered. In Japan, Panasonic and
Sony have already displayed ultra-high definition
OLED TV technology this year.
However, generally, non-Korean panel makers Source: USPTO
appear reluctant to invest aggressively in OLED
or flexible technology as the start-up costs are We think the market will take notice once Korean
high. The technology will only become profitable companies such as Samsung and LG start to
with strong demand for flexible design introduce differentiated flexible design products.
smartphones or tablets. At the moment only small As their technology improves, mass production will
displays are possible, so companies find it hard to kick in, expanding the supply chain for materials
justify the investment needed to set up mass and equipment by 2H 2014. In turn, with
production of OLED or flexible displays. economies of scale we expect production costs to
fall and the number of products to increase; we
There is also the risk that with such a new believe this will be the catalysts for Taiwanese and
technology early entry could result in expensive Japanese players to enter the market.
failure. It seems that panel makers may be waiting
Korean companies are likely to benefit from being
for a good entry point after the Korean players
able to introduce high-end products after each
make the first move and build up the necessary
technical improvement. Meanwhile, competition
supply chain.
will increase as products with many different form
Meanwhile, in the US, Apple appears to be factors come on the market as mass production
interested and has filed a patent application for a grows outside Korea.
smartphone that uses flexible display. However, Although the company has a great record of
Apple still has doubts about the ability of these innovation (e.g. sophisticated software, in-cell touch,
new products to combine natural-coloured images Retina display and aluminium casing), Apple may
and excellent clarity. This is the main reason find it increasingly difficult to differentiate its
why Apple had not been aggressively pursuing products using existing technology. Apple is
OLED technology. expected to introduce flexible display in 2H 2014
when the technology platform has stabilised and
Apple is considered to be more interested in
mass production improves. Given its outstanding
applying Retina display to iPhones and looking at
ability to meet customers’ needs, the company may
other options for iPads and MacBooks than start to come up with innovative flexible display
moving into something completely new. Apple products in 2015.
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29. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
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30. Telecoms, Media & Technology
Asia Technology abc
8 April 2013
Technology overview
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