[Edaily Reporter JAEMIN SONG ] Global shipments of small-sized organic light-emitting diodes (OLEDs) in the second quarter of this year fell 4.6% year-over-year due to a slump in the smartphone market. However, Samsung Display recorded a 40% market share in shipments, driven by the success of SamsungElectronics’ new foldable smartphone models.

According to market research firm UBI Research on the 19th, global shipments of small-sized OLEDs in the second quarter of this year totaled 232.7 million units, a 4.6% decrease from the same period last year. Shipments also fell by 0.2% compared to the previous quarter. Shipment value totaled $8.9 billion.

The market was weighed down by a seasonal lull—marked by the absence of major new smartphone launches—and slowing demand for mid-to-low-end products. As the cost of manufacturing finished products rose due to soaring memory prices, panel procurement and production plans were adjusted conservatively, particularly among Chinese smartphone manufacturers.

Although the overall market contracted, the performance of individual panel manufacturers varied depending on their customers and product mix. In particular, it appeared that whether a company supplied premium and foldable products—which command higher average selling prices—rather than simply focusing on shipment volume was the key factor determining its performance.

Samsung Display shipped approximately 90 million small-sized OLED panels in the second quarter, capturing a market share of about 40%. As the proportion of high-value-added products expanded, its market share by revenue rose to nearly 50%.

Samsung Display’s performance was driven more by panels for foldable phones than by OLEDs for standard smartphones. As production of panels for SamsungElectronics’ “Galaxy Z8” series—launched last month—expanded in earnest, Samsung Display’s foldable OLED shipments more than tripled compared to the previous quarter.

In contrast, LG Display saw a decline in OLED shipments due to the off-season period preceding the launch of new iPhone models by its major client, Apple. A seasonal recovery is expected once production of panels for the new iPhones begins in the third quarter.

Chinese panel manufacturers BOE and TCL CSOT also saw their shipments decline as Chinese smartphone manufacturers adjusted their production volumes. This was influenced by a slowdown in demand for mid- to low-end smartphones and inventory adjustments by customers due to rising component prices.

UBI Research stated, “In the small-sized OLED market, product mix and average selling prices are driving company performance more than simple volume growth,” and predicted, “Performance differentiation among companies will become even more pronounced depending on whether they can supply premium smartphones and new foldable models in the future.”