On June 9, the latest data from market research firm Sigmaintell showed that the average utilization rate of China's 6th-generation flexible OLED production lines has fallen from 80% in the fourth quarter of last year to 69% in the first quarter of 2026.
Sigmaintell stated that the decline in utilization was due to inventory backlog at the end of last year, which caused smartphone brands to slow down their panel procurement.
Although some entry-level and mid-range smartphone brands may replenish panel inventory, the overall recovery in smartphone demand remains weak. Sigmaintell predicts that the average utilization rate of China's 6th-generation flexible OLED production lines will further decline to 67% in the second quarter, down 2 percentage points from the previous quarter.
Nevertheless, global smartphone panel shipments still achieved moderate growth. Data shows that global smartphone panel shipments reached 556 million units in the first quarter, representing a year-on-year increase of 2.4%, primarily driven by increased demand for flexible OLED from Apple and Samsung Electronics.
In terms of vendor performance, BOE shipped 148 million smartphone panels this quarter, holding a 26.6% market share; Samsung Display followed with 84 million units (15.1% share); TCL CSOT shipped 72 million units (13.0% share); HKC shipped 63 million units (11.4% share); and Tianma Microelectronics shipped 58 million units (10.4% share).
Sigmaintell pointed out that with rising memory semiconductor prices increasing overall phone manufacturing costs, smartphone manufacturers are now focusing more on enhancing product competitiveness rather than aggressively cutting display procurement prices. The narrowing price gap between different display technologies is also one of the reasons for this shift.
The firm stated, "Market demand for high-spec flexible OLED panels with features such as high refresh rates, high brightness, and low power consumption is likely to continue growing. The wider adoption of high-end flexible OLED technology in mid-range smartphone models will help improve the utilization rate of flexible OLED production lines."
