On August 10th, Samsung announced on August 9 that its subsidiary, through its subsidiary OLED manufacturer Novaled, reached an agreement to acquire the latter at a price of 260 million euros (about 347 million US dollars).

  Recent indications show that Samsung is very optimistic about this industry-disruptive display technology, on the one hand, through acquisitions to tighten reserves and promote OLED display technology, on the other hand, through mass production and price reduction, etc., to increase OLED TV Market promotion efforts.

Huge acquisition of Novaled

According to a report by the China Securities Journal on the August 10th, the Wall Street Journal reported that Samsung and its German OLED manufacturer Novaled reached an agreement on the 9th to acquire the latter at a price of 260 million euros (about 347 million US dollars).

Samsung will acquire German Novaled through its subsidiary Cheil Industries and Samsung Electronics. Samsung Cheil Industries subsidiary manufactures electronic materials for OLED displays. According to reports, Cheil will acquire a 50% stake in Novaled, while Samsung's parent company will account for 40% and the remaining 10% will be acquired by Samsung Venture Capital. Samsung’s acquisition of the Novaled market has long been speculated. As early as last month, the Wall Street Journal reported that Cheil was negotiating with the German company Novaled.

It is reported that Novaled was founded in 2001 by the Fraunhofer Institute for Applied Research Promotion and the Dresden University of Technology. It specializes in the production of OLED materials for display and luminaires. It has about 130 employees and its main customer is Samsung. .

Although Samsung still faces technical challenges in producing large-size OLED displays, Samsung is still investing heavily in OLED technology. Its purpose is to gain greater advantages than its competitors in the Asian display field, which is not like LCD. Display technology is as easy to imitate and catch up with. At the end of July this year, Samsung Electronics said that Samsung Display’s capital expenditure has reached 6.5 trillion won ($5.8 billion) this year, most of which is used to expand OLED production equipment.

OLED TV sharply cut prices

In addition to spending huge sums of money to implement technology reserves, Samsung has also launched major initiatives in the promotion of OLED TV. On August 11, according to Bloomberg, Samsung announced that it plans to reduce the price of its OLED TVs sold in the Korean market from 15 million won (about 13,000 US dollars) to 9.9 million won (about 8900 US dollars), with a price cut of up to three. One of the goals is to promote the sales and popularity of OLED TVs.

On June 27 this year, Samsung Arc OLED TV was first listed in South Korea in the world. The product display is 55 inches and the selling price is about 15 million won. Jin Xuan, the vice president of Samsung Electronics and the head of the electronic image display business unit, said that the biggest feature of the curved OLED TV produced by the company is that the picture quality is clearer and the display has no "bad spots", which can bring better vision to users. Experience. The TV is also seen as one of Samsung's "strategic" products to capture the global TV market in the second half of this year.

US OLED leading stocks rose

Supporting the information of Samsung Electronics' OLED market, it also comes from the US stock market on the other side of the ocean. On August 8th, Universal Display (Nasdaq: OLED), the leading OLED display technology company in the United States, announced its far-reaching second-quarter results and stimulated the company's share price to rise more than 20% in the 9th trading.

The quarterly report showed that the company's net profit and earnings per share for April-June were $15.4 million and $0.33, respectively, up 40% and 43% year-on-year. Operating income was 49.4 million US dollars, up 65% year-on-year. The above results all hit record highs. The unexpected performance was largely due to the substantial increase in sales of OLED display materials. In the second quarter, Universal Display's sales of OLED display materials increased by 111%, achieving revenue of $27.1 million, accounting for half of all sales revenue. the above. In its full-year performance forecast, Universal Display expects revenue to reach the upper limit of the forecast range of $125 million.

The company pointed out in the financial report that the reason for the sharp increase in sales of OLED materials is mainly due to the large purchases of panel manufacturers, especially Samsung. At present, Samsung, LG, Panasonic and other companies are authorized customers of Universal Display's OLED technology.

Market prospects

At present, OLED displays are widely used in smart phones. Due to their low energy consumption and good picture quality, OLED displays are becoming more and more popular in the field of television. According to market research firm DisplaySearch, the size of the OLED display market is expected to increase from $8 billion in 2012 to $20 billion by 2017.

In January 2013, a report released by the professional research firm Transparency Market Research said that by 2018, the global OLED market share will increase from $4.9 billion in 2012 to $25.9 billion, with an average annual growth rate of 31.7%. This growth rate will be much higher than the overall increase of 3% of the global display market.

The Novaled company acquired by Samsung is a broad example of the “money scene” of the global OLED market. Joseph Pate, chief executive of eCAPITAL, a venture capital firm holding a 20% stake in Novaled, told The Wall Street Journal that Samsung’s offer is equivalent to 10 times of Novaled’s 2012 revenue and 100 times its pre-tax profit. In recent years, the annual growth rate of Novaled's revenue is as high as about 50%. According to Pat, Novaled has huge profit margins in the next-generation OLED TV market. At present, smart phones are the largest field of OLED applications. In 2012, they accounted for 71% of OLED market size. Analysts predict that in 2015, the TV industry will surpass smartphones as the largest market for OLED applications.

On August 7, LG, the world's largest display manufacturer, announced that it will mass-produce OLED panels from the second half of 2014. At present, the main obstacles restricting the promotion and application of OLED technology are high prices and low yields. If the relevant manufacturers can solve the above bottleneck in the near future, the market prospect of OLED will be broader.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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