On September 1, ZTE officially released the world's first under-screen camera phone AXON 20 5G, and Visionox, a listed company that supplies amoled screen with integrated under-screen camera technology for this model, is now receiving more attention from the market.
According to a previous exclusive report by a reporter from the 21st Century Business Herald, Visionox’s orders for Huawei this year may reach 2.5 billion yuan. However, Judging from the earnings report for the first half of 2020 that Visionox recently disclosed, its expected performance has not yet been realized. According to the semi-annual report, Visionox achieved operating income of 1.165 billion yuan in the first half of the year, a year-on-year increase of 4.44%; while the net profit attributable to the parent company was only 92 million yuan, a decrease of 47.30%. The decline in Visionox's net profit may be related to the decline in the popularity of the panel market under the impact of the corona virus.
OMDIA (formerly IHS) data show that the expected market size of global display panels in 2020 is US$107.1 billion, a year-on-year decrease of 1%.
The global outbreak of the COVID-19, escalating trade frictions, geopolitics and other uncertain factors have brought greater downward pressure on the global consumer market. "Visionox said. Although profits have declined, Visionox may be launching more actions in frontier areas such as folding screens.
The 21st Century Business Herald reporter learned exclusively from people close to Huawei’s suppliers that Visionox is expected to become the screen supplier of Huawei’s next-generation folding screen mobile phones. Recently, Visionox has also reached an agreement with Huawei that the two parties will work together for the next generation. Technical breakthrough and development of folding screen mobile phones. It is understood that the main partner of Huawei's folding screen mobile phone is South Korea's Samsung. For example, Huawei's new generation Mate X2 uses panels from Samsung. However, the above-mentioned sources close to Huawei's suppliers pointed out that as the demand for domestic substitution in semiconductors and other fields heats up, the localization of suppliers of new panels and other parts is also receiving increasing attention. "The first two generations of Huawei have used Samsung. Although the cooperation with Samsung has not been affected by trade frictions or sanctions, the gradual localization of suppliers is also a foreseeable direction." The above-mentioned analysis of Huawei suppliers said, " On the one hand, the technology of domestic OLEDs is continuously leading, which can meet the needs of upgrading and upgrading of mobile terminals. On the other hand, it can better control costs for large manufacturers."
It is worth mentioning that the AMOLED display panel behind the screen of the folding screen mobile phone does show a greater market opportunity. According to OMDIA (formerly IHS) data, the market size is expected to reach US$29.7 billion in 2020, a year-on-year increase of 19%; among them, flexible AMOLED has the fastest growth in the smartphone panel market, with annual shipments expected to reach 238 million Films, a year-on-year increase of more than 50% compared to 2019. In fact, compared to the overall revenue weakness, Visionox's OLED product revenue increased significantly in the first half of the year, with a year-on-year increase of 36.56%.
"The penetration rate of folding screen and flexible screen products may continue to increase, especially with the decline in costs and the mass production of more manufacturers, which will be accompanied by 5G technology to stimulate another round of consumption upgrades in the field of mobile phones and even consumer electronics." An electronic analyst of a medium-sized brokerage said.
