OPPO shipments could hit an AMOLED ceiling, thanks to Samsung
It looks like Samsung could stand in the way of OPPO’s goals to breach 100 million shipments in 2016. No, not because it wants to protect its own Galaxy products… well, not directly.
You see, Samsung Display churns out hundreds of millions of AMOLED panels for not only Samsung Electronics’s own phones, but other manufacturers as well — China’s Xiaomi is one notable example and, of course, we’re also talking OPPO.
Insiders say that the company will only ship 100 million smartphone displays to China and OPPO simply can’t have them all. The hope is with the factory investment that China-segregated production can increase by 50 percent over the next three years. At the same time, Samsung Display makes 240 million units for its affiliate company’s Galaxy phones and that number is expected to near 300 million in 2019.
That’s not fast enough, though, for Xiaomi. It elected to source screens from two Chinese vendors for its high-impact budget phone, the Redmi Pro. It’s not clear if the supply squeeze at Samsung was a main reason for the change.
The shortage could also mean that OPPO won’t make its 90+ million shipment goal. It started the year with plans for 60 million shipments before things popcorned to excitement. Perhaps it will have to make some major display decisions with its releases going forward.