According to the latest update of the Quarterly Advanced IT Display Shipment and Technology Report released by DSCC Research, the growth rate of the high-end laptop display market has slowed down due to the accumulation of inventories in branded factories and the macro market environment.
In 2022, the high-end laptop display market grows 107% year-over-year to 16.9 million units of capacity, with Mini LED’s market share rising from 32% in 2021 to 65% in 2022 and OLED display’s market share declining from 68% in 2021 to 35%. The majority of the Mini LED camp is contributed by Apple, Acer and Asus.
In recent earnings calls from Apple, Asus, Dell, HP and Lenovo, they all cited the challenges of the impact of the macroeconomic environment, with the overall PC market declining faster than expected and weak consumer and business demand. All of these brands noted that they expect to see inventory adjustments through the second half of 2023. From a revenue perspective, gaming and creative premium products mitigate the decline in revenue.
By 2023, the high-end laptop display market is expected to be flat, with incremental demand for OLED laptop compensating for the decline in Mini LEDs. Although SDC has tried to balance the demand for IT OLED because of the low crop rate of rigid OLED, the brands have not given higher demand planning for 2023, and the order volume of ASUS, which has the largest purchase volume, is expected to be much lower than last year, but SDC is still actively discussing with Acer, HP, Samsung, LGE, Xiaomi, etc. to increase the demand to ensure that the overall rigid OLED laptop demand in 2023 will not be lower than that in 2022.
In 4Q2022, LGD led the overall high-end laptop display market with a 40% share, primarily from Apple’s Mini LED products, followed by SDC with a 32% share. On a panel revenue basis, LGD led with a 49% revenue share in 4QFY22. Looking at overall 2022 shipments, Sharp has a 36% share in high-end laptop displays, followed by SDC with 35% and LGD with 27%.
Although the OLED IT market growth in the past two years is not very aggressive, but with the leading panel makers in the G8.7 OLED panel factory planning, in 2025-2026 as Apple began to adopt a large number of OLED panels will have a higher growth space, in 2027, is expected to high-end laptop computers will account for 18% of the total laptop market and total revenue of In 2027, it is expected that high-end laptops will account for 18% of the total laptop market and 46% of the total revenue, with a compound annual growth rate of 31% to reach $6.7 billion in 2027 (The current market is about 46.096 billion RMB).
