Why Apple and Samsung go to flexible display?

7/28/2019 Why Apple and Samsung go to flexible display?

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Why Apple & Samsung go to Flexible Display

July, 2013

MATERIALS SYSTEM

-sooner than most of us have expected


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Executive Summary

Apple and Samsung are heavily dependent on their mobile business

Smartphone ASP* could decline up to almost $200 by 2016 and leaveno room for manufacturers profit

The profit crunch of Smartphone component manufacturers will bemore than severe

Current Smartphone hardware without a technical disruption will bered ocean

Around Yr 2016 there would be new Smartphone hardware platformwith roll-able display

Flexible display with curbed form factor such as wristband type displaywill be short lived due to rollable or foldable display

Apple and Samsung have no choice but to go flexible display due to

squeezing Smartphone profit* ASP(Average Selling Price)


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Apple mobile dependency

Apple makes most of their revenues from iPhone and iPad, i.e., mobile

Source: http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/
http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/


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Samsung mobile dependency

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1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13

IM CE Semicon DP

Samsung Electronics Sales Growth By Biz. DivisionUnit: Trillion Won

CE : Consumer Electronics, IM: IT & Mobile Communications, DS: Device Solution, DP: Display PanelSource: http://www.samsung.com/us/aboutsamsung/ir

Samsungs Mobile business dependency is exponentially growing
http://www.samsung.com/us/aboutsamsung/irhttp://www.samsung.com/us/aboutsamsung/ir


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Samsung mobile dependency

Samsung earns their profit mostly from Mobile business as well

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1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13

IM CE Semicon DP

Samsung Electronics Operation Profit Growth By Biz. DivisionUnit: Trillion Won

CE : Consumer Electronics, IM: IT & Mobile Communications, DS: Device Solution, DP: Display PanelSource: http://www.samsung.com/us/aboutsamsung/ir
http://www.samsung.com/us/aboutsamsung/irhttp://www.samsung.com/us/aboutsamsung/ir


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Smartphone BOM/ASP* as of 2012 to 2016

* BOM (Bill of material)/ ASP(Average Selling Price)Source: http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/

Apple iPhone5 16GB ASP $649

BOM 207$

Apple iPhone5 16GB ASP under $200

BOM ?$

Smartphone ASP could decline up to almost $200 by 2016 and leave no room for profit
http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/


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Smartphone Bill of Materials as of 2012


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Samsungs BOM/ASP ratio is narrower than their competitor , Apple

Samsung Galaxy S4 BOM

Source: http://www.pcmag.com/article2/0,2817,2416792,00.asp
http://www.pcmag.com/article2/0,2817,2416792,00.asphttp://www.pcmag.com/article2/0,2817,2416792,00.asp


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Samsungs Initiative on Roallbe and Foldable display

Samsung has no choice but soon to go flexible display due to profit crunching

* BOM (Bill of material)/ ASP(Average Selling Price)Source: http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/

Apple iPhone5 16GB ASP $649

BOM 207$ BOM estimated to beabout 220~230$

Samsung Galaxy S4 ASP aboutless than iPhone 5
http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/


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Samsung strategic initiative on their samrtphone BOM

Increase Application Processorproduction & in-source

Lead 5G communication

technology standard

Disrupt current display

technology with novel materials

Lead flexible display with all its

components in-sourcing

Continuous in-production process

improvement

Continuous const reduction

through in-production innovation


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Top Five Smartphone Sellers of China

Chinese Smartphone manufacturers are catching up with Apple and Samsung

Source: http://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htm
http://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htmhttp://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htmhttp://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htmhttp://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htm


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Flexible Display, so what?

Flexible display form factor has not too much of user benefits except WoW


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Various Form factors of Flexible Display

Flexible Display Rollable Display Foldable Display

On Curbed Surfaces

Wearable computers

Mass production stage

Samsung, LGD & etc

True technical disruption

Barrier Breaker between

Smartphone and tablet

To be mass produced

Material technical disruption

Barrier Breaker between

Smartphone and notebook

To be mass produced


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True technical disruption lies in rollable or foldable display

Rollable or foldable display is yet a concept but soon to be commercialized

Source: http://www.core77.com/blog/technology/a_smartphone_with_a_flexible_display_remains_a_concept_for_now_24223.asp
http://www.core77.com/blog/technology/a_smartphone_with_a_flexible_display_remains_a_concept_for_now_24223.asphttp://www.core77.com/blog/technology/a_smartphone_with_a_flexible_display_remains_a_concept_for_now_24223.asp


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Conductive

Ball

Who we are?

Materials and System is 5 year old Korean high tech venture company withrevolutionary nanofiber based flexible display material mass production technology


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Thank You!

Business inquiry

Jay S. Ha, Biz. Development

Tel : 82-70-7847-8882

Email: [email protected]

Skype : jayhah7

1-306 innoplex, 306 Shinwon-roYeongtong-gu, Suwon-si,Gyeongggi Korea, 443-380

Tel. +82-31-203-8293Fax. +82-70-7613-3666
mailto:[email protected]:[email protected]

Documents

Why Apple and Samsung go to flexible display?