Investment Rating - The report does not explicitly state an investment rating for the smartphone screen production industry Core Insights - The smartphone screen production industry is characterized by high technical barriers and a highly concentrated supply chain, with key materials and equipment dominated by a few international giants [4][12][14] - The market for flexible AMOLED displays is rapidly growing, with a significant increase in shipments and market share [15][40] - The industry is expected to see continued growth driven by advancements in display technologies, including foldable screens and micro-LEDs [42] Summary by Sections Industry Definition - The smartphone screen production process involves the transformation of raw materials like glass substrates, liquid crystal, OLED materials, and conductive layers into high-resolution display modules, requiring expertise in materials science, optics, and electronic engineering [5] Industry Classification - The industry can be classified by display technology (LCD, OLED, Micro-LED) and product form (flat screens, curved screens, foldable screens) [6][9][11] Industry Characteristics - High technical barriers exist due to the complexity of production processes and the need for precision equipment [13] - The supply chain is highly concentrated, with a few companies controlling the majority of the market share in key materials and equipment [14] Development History - The industry has evolved from early LCD technology to the current dominance of OLED and flexible displays, with significant technological breakthroughs expected in the future [16][20] Industry Scale - The market size of the smartphone screen production industry is projected to grow from 742.90 billion RMB in 2025 to 874.45 billion RMB by 2029, with a compound annual growth rate of 4.16% [38] Market Trends - The demand for AMOLED displays is increasing, with sales expected to reach 2,992 billion RMB by 2030, driven by their advantages in quality and energy efficiency [40] - The foldable screen market is also expanding, with a 53.1% year-on-year increase in shipments in Q1 2025 [42] Competitive Landscape - The industry is characterized by high concentration, with major players like Samsung, LG, and BOE leading the market [48][50] - Domestic manufacturers are rapidly increasing their market share, with BOE becoming a key supplier for major brands like Apple [50]

Core Viewpoint - The article discusses the paradox of consumer behavior in the electronics industry, particularly the demand for LCD screens despite the technological advancements of OLED displays. It highlights a movement among users who prefer LCD screens due to concerns about eye health and the discomfort caused by OLED screens' flickering [1][2][28]. Group 1: Consumer Behavior and Trends - A group of users, identifying as "OLED victims," has organized a signature campaign to request manufacturers to produce a flagship LCD phone, reflecting a niche demand for LCD technology [2][6]. - The campaign was initiated by a user named "Zha Ge," who proposed a high-spec LCD phone, indicating a desire for a premium LCD option in a market dominated by OLED [3][6]. - Despite gathering over 2,000 signatures and 3,600 survey responses, major manufacturers like Meizu and Blue Fox have declined to support the initiative, indicating a lack of commercial viability for LCD phones [9][20]. Group 2: Market Dynamics and Challenges - The decline of LCD in the flagship market is attributed to structural changes in supply chains, with major manufacturers shifting focus to OLED technology, making it difficult for LCD to compete [20][24]. - The cost of producing high-quality LCD screens has risen, while the cost of OLED has decreased due to economies of scale, further disadvantaging LCD [20][24]. - The marketing perception of OLED as a premium product has solidified its position in the high-end market, while LCD struggles with outdated technology and consumer preferences [24][26]. Group 3: User Needs and Future Outlook - The article notes that the actual demand for LCD devices is insufficient to justify the production of new models, as evidenced by poor sales of recent LCD offerings [27][28]. - Some users remain loyal to LCD due to concerns about eye strain and screen burn-in associated with OLED, but this demographic is relatively small [28][31]. - Advances in OLED technology, such as improved flicker rates and eye-friendly features, may eventually address the concerns of sensitive users, potentially reducing the demand for LCD in the future [31][33].