The overwhelming success of the iPhone X has captured global attention, and it's one of the main reasons why so many people rushed to buy it. Its stunning display uses OLED panels, which also contribute to the phone’s impressive pricing during promotions. Today, we take a closer look at the cost of OLED technology based on recent data.
OLED displays often create strong reactions from viewers: 1) They look incredible; 2) They feel expensive.
According to IHS Markit, this perception is gradually changing. The manufacturing cost gap between OLED and LCD displays is getting smaller. In Q2 2017, the total manufacturing cost for a 55-inch OLED UHD TV panel was $582 per unit, a significant drop of 55% from the first quarter of 2015. By Q1 2021, this cost is expected to fall further to $242.
In 2015, the manufacturing cost of a 55-inch OLED UHD TV panel was 4.3 times that of an LCD panel of the same size. Now, it’s only 2.5 times. This trend shows that OLED technology is becoming more affordable over time.
Jimmy Kim, a principal analyst at IHS Markit, explained, “Historically, when the cost difference between an established technology and a new one narrows, the new technology tends to gain traction. The shrinking cost gap between OLED and LCD panels will help boost the adoption of OLED TVs.â€
However, material costs aren’t the only factor affecting the price difference. Even though the cost of a 55-inch OLED UHD TV panel is currently 2.5 times that of an LCD panel, the actual material cost gap is only 1.7 times. Other factors such as yield rates, utilization, depreciation, and panel size also play a key role in determining overall costs.
When production scales up to match that of LCD panels, the cost gap could narrow from 2.5 times to 1.8 times. Kim added, “But due to depreciation costs, simply increasing production won’t be enough. Once depreciation is complete, the estimated cost could drop by 31% from current levels.â€
This study focuses on television panels rather than commercial displays, so the cost gap for OLEDs in digital signage isn't yet fully clear. However, it's expected that OLED technology will expand into more applications soon. With systems like the 56iq digital signage solution, OLED screens will deliver even better visual experiences, offering users a more immersive and high-quality display.
In the future, it's not just the iPhone X that will shine—OLED advertising screens and home TVs are likely to become common. This shift seems entirely reasonable as the technology continues to evolve and become more accessible.
According to IHS Markit, this perception is gradually changing. The manufacturing cost gap between OLED and LCD displays is getting smaller. In Q2 2017, the total manufacturing cost for a 55-inch OLED UHD TV panel was $582 per unit, a significant drop of 55% from the first quarter of 2015. By Q1 2021, this cost is expected to fall further to $242.
In 2015, the manufacturing cost of a 55-inch OLED UHD TV panel was 4.3 times that of an LCD panel of the same size. Now, it’s only 2.5 times. This trend shows that OLED technology is becoming more affordable over time.
Jimmy Kim, a principal analyst at IHS Markit, explained, “Historically, when the cost difference between an established technology and a new one narrows, the new technology tends to gain traction. The shrinking cost gap between OLED and LCD panels will help boost the adoption of OLED TVs.â€
However, material costs aren’t the only factor affecting the price difference. Even though the cost of a 55-inch OLED UHD TV panel is currently 2.5 times that of an LCD panel, the actual material cost gap is only 1.7 times. Other factors such as yield rates, utilization, depreciation, and panel size also play a key role in determining overall costs.
When production scales up to match that of LCD panels, the cost gap could narrow from 2.5 times to 1.8 times. Kim added, “But due to depreciation costs, simply increasing production won’t be enough. Once depreciation is complete, the estimated cost could drop by 31% from current levels.â€
This study focuses on television panels rather than commercial displays, so the cost gap for OLEDs in digital signage isn't yet fully clear. However, it's expected that OLED technology will expand into more applications soon. With systems like the 56iq digital signage solution, OLED screens will deliver even better visual experiences, offering users a more immersive and high-quality display.
In the future, it's not just the iPhone X that will shine—OLED advertising screens and home TVs are likely to become common. This shift seems entirely reasonable as the technology continues to evolve and become more accessible.480W Medical Power Supply,480W Medical Device Power Supply,480W Medical Power Adapter,480W Rade Power Supplies
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