With an annual expansion of 1 to 2 new plants, BOE has become the world's largest panel maker. Its panel applications cover a wide range of fields. The product lines are increasingly complete and strategic operations are also more flexible.
In order to seize the large-size TV market, he rushed to slash prices and seek sales. In the 32-inch panel market where the company has the right of control, it was eager to step on the brakes to reduce production, and brewing up prices to fight profits.
BOE currently has a total of 10 panel factories. There are also two 6-generation AMOLED panel makers and a second 10.5-generation TFT LCD panel maker. In recent years, BOE’s new production capacity has continued to expand. In the second half of last year, it has become the largest capacity in the world. Panel factory, has an absolute influence on the panel market price.
In the past, based on technology and cost considerations, most of the mainland panel makers produced single-size products on a single production line, pursuing absolute cost advantages. For example, BOE and Huaxing Optoelectronics are currently the world’s largest 32-inch panel suppliers. Cutting 18 pieces, quite competitive. And 32 is the mainland's two major panel faucet (BOE and China Star Optoelectronics) Cash cow, is the most profitable product.
The 10.5-generation BOE plant was mass-produced at the beginning of this year, locked in the production of super-sized 65-inch panels. Currently, 65-inch panels are still dominated by Taiwan-Korea panel makers. Samsung, LGD, AUO and Innolux are the four panel makers. More than 90% of the market. Although the quality of BOE's 65-inch panel is not as good as that of the Taiwan-Korea panel factory, it calls out “no depreciation and no loss of money”. Even if the current production cost is more than US$280, it will continue to smash prices and grab the market. Take up.
BOE made bold sales at the 65-inch panel, but the 32-inch panel with the largest number of shipments and the highest market share was reversed. In the second quarter, it reduced the supply of panel panels by 32, converting the 8.5-generation capacity to 55.吋 panel, making 32 supply and demand reverse in just one quarter. In the third quarter, downstream manufacturers pulled goods warmer, BOE and China Star Optoelectronics immediately shouted, relying on small and medium-size TV to boost profitability performance.