According to the investor relations record disclosed by BOE on December 14, BOE said in a conference call on December 9, as the LCD production line has gradually entered the mature stage from the rapid development stage of large-scale expansion in recent years, the market share gradually concentrated to the company and other leading enterprises in the industry, the product price is the basis for the healthy and stable development of industrial chain enterprises will gradually become a consensus.
When IT comes to the view of the price trend of the panel, BOE said that since the second half of 2021, the panel price has undergone structural adjustment, and the prices of TV and IT LCD products have fallen to varying degrees. From the beginning of 2022 to the end of the third quarter, due to the combination of many factors, end-customer demand is greatly affected and panel prices are under pressure. Affected by the overall decrease in the industry movement rate, the supply and demand relationship, especially the oversupply of LCD TV has been greatly eased.
In terms of demand, in the short and medium term, with the year-end promotion season combined with the impact of large-scale sports events, terminal inventory is gradually reduced, and panel demand is expected to recover structurally.
In the long run, factors such as the continuation of large-size products, the increasing penetration rate of new technologies, and the expansion of application scenarios will drive the growth of panel demand. At the same time, as the influence of uncertain factors is gradually digested, the industrial development pattern will gradually return to rationality, and the product price will fluctuate within a reasonable range mainly affected by the off-peak season.
In terms of flexible OLED business, BOE pointed out that the penetration rate of flexible OLED in the smart phone field continues to increase and the overall growth is good. The company flexible OLED products have basically completed the introduction of mainstream global brand customers. In the future, it will focus on achieving more coverage of client product series and continuously increasing the proportion of client of the company products. At the same time, we will continue to promote the application of flexible OLED in IT, vehicle and other new fields.
Boe data showed that the company flexible OLED shipments continued to grow in the first three quarters of 2022, shipping nearly 50 million pieces and 18 million pieces in the third quarter. Since the fourth quarter of 2021, the price competition of entry-level products has been intensifying, the prices of some products continue to decline, and the prices of some flexible OLED module products have seen a significant decline, which puts pressure on the short-term depreciation of the company flexible OLED production line and affects its operating performance to a certain extent.
The company is expected to ship 80 million flexible OLeds in 2022, which will continue to grow from last year. In the future, the company will continue to increase the shipment of flexible OLED products and focus on increasing the shipment proportion of high-end flagship products, so as to continuously improve the operating situation of flexible OLED business.