DSCC Upgrades Foldable Phone Panel Forecasts by Double Digits

Recent developments in the smartphone space prompted Display Supply Chain Consultants to upgrade its 2021 and 2022 shipment forecasts on panels for foldable handsets, blogged CEO Ross Young Monday. DSCC raised its 2021 guidance by 14% from previous forecasts to 10.4 million panels, and by 16% to 18.7 million in 2022, he said: “We now see foldable smartphone panels up 220% in 2021 and 80% in 2022.”

Smartphone brands and panel suppliers recently started “prioritizing” foldable phones and panels due to the semiconductor shortage,” said Young. “Since brands can only get so many processors and panel suppliers can only get so many driver ICs, they are emphasizing higher priced devices and panels to maximize revenues.” Market leader Samsung “is boosting its emphasis on foldables and delaying lower priced devices,” he said.

Chinese brands Huawei and Honor “are getting more aggressive in foldables than we previously estimated,” said Young. U.S. export restrictions on Huawei previously swayed DSCC to publish “conservative expectations” about Huawei’s ambitions in foldables until the brand “recently extended the life of the Mate X2 by introducing a 4G version,” he said. “We believe they are preparing a new foldable to launch by the end of the year as well as a new device to launch in 2022.”

DSCC also raised its 2021 and 2022 shipment forecasts for Honor after some updated “supply chain checks,” said Young. It now expects Honor to launch a new foldable smartphone by year’s end, “followed by a second-generation device in 2022,” it said.

Samsung also has been more aggressive than previously thought with its Z Flip 3 pricing, plus with its “very aggressive” discounting on the Z Flip 3 and Z Fold 3, said Young. DSCC's supply chain checks “with visibility to nearly the end of the year” prompted it to upgrade its Z Flip 3 panel procurement outlook by 16% and by more than 16% on Z Fold 3 panel procurement, he said.