BOE's market is sluggish, LCD prices are greatly reduced, and OLED Huawei's demand is reduced

 

As we all know, among domestic screen manufacturers, BOE is the best, with LCD screen sales ranking first in the world and OLED screen sales ranking third in the world.

 

Not to mention the LCD screen, BOE has worked hard for decades to win the world's first. As for the world's first OLED screen, Huawei's credit is in the middle.

 

Before, Huawei fully supported BOE, and used BOE's OLED screens in its own Mate/P series. At the peak, Huawei's Mate/P series shipments were very large, with more than 50 million units a year.

 

Therefore, BOE's OLED is also developing rapidly, and it has entered Apple's supply chain to supply OLED screens for the iPhone, which has a great momentum to catch up with LG.

 

In the past two years, due to the outbreak of the epidemic, the demand for PCs and TVs has increased, and the price of LCD screens has risen sharply, making BOE a lot of money.

 

Take 2021 as an example, BOE's revenue is 219.4 billion yuan, a year-on-year increase of 61.89%, and its net profit is 25.83 billion yuan, a year-on-year increase of 413%. The profit in 2021 is equivalent to the sum of the past 10 years. Said to make money in 2021?

 

But now the good days are gone, and it can even be said that the bitter child has come.

 

First, the price of LCD has been greatly reduced. This year's weak demand for large-screen equipment such as PCs and TVs has led to a sharp drop in LCD demand, and then the price has been greatly reduced. Compared with last year's high price, the current price of many sizes of LCD screens has been cut in half, directly down 50% + , the selling price of many panels is already lower than the cost price and sold at a loss.

 

The second is the OLED screen, which lacks the big customer of Huawei. Of course, it's not that Huawei doesn't buy OLED screens from BOE, but the fact that Huawei's mobile phone shipments are not high now, which has led to a decrease in BOE's share of OLED screens.

 

According to the data of the second quarter, BOE's market share in OLED screens is about 8%, which is a year-on-year decrease, which is obviously caused by the reduction of screens that Huawei wants.

 

It is conceivable that the performance of BOE in 2022 will definitely not be as good as that in 2021, and the hard days are probably not running away.

 

Of course, for domestic screen manufacturers, living a hard life is not important, how much money they make is not important, what is important is to break the foreign monopoly and control the global screen price, which is equivalent to helping domestic mobile phones, domestic TVs, etc. The rise of manufacturers in the world, this is the greatest significance.