The Force Behind Today’s Brilliant LCD Tech

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  1. Elmo Scoggins says:

    Wow! Sounds great, akthough you missed a few things. 1) AUO is not a major player in OLED. Thay have been in and out of OLED development for many years and have never sold commercial OLED products. Further, they have been talking about releasing an OLED display for over a year, and have yet to deliver. 2) AUO faces a continuing uphill battle against Chinese (and other) panel manufacturers as they do not have a panel fab in China. They must pay a 5% (likely moving to 7% later this year) import tariff, which Samsung, LG and local Chinese panel producers do not. 3) Yes, AUO supplies panels to major tech companies, as do every other panel producer, yet AUO was unable to hold on to Apple as a customer due to product issues and delays. 4) AUO’s revenue share has remained between 17% and 20.5% for the last year (currently 18%), with the only growth coming from being an early supplier of 4K panels. Since prices for 4K are declining rapidly and there are a number of other (larger) suppliers of 4K now in the market, it will be difficult for AUO to maintain share without another ‘premium’ product. 5) AUO (and other panel producers) are facing a substantial threat from Chinese panel suppliers who are adding a great deal of capacity over the next 12 to 18 months, worsening an oversupply situation. AUO’s margins have declined every quarter since they peaked in 2Q 2013.

    You might think more toward Corning (GLW) or OLED material supplier Universal Display (OLED) if you are looking for growth companies in the display space…


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