South Korea's display industry views Apple's potential 2026 launch of an OLED MacBook as a critical turning point that could ignite explosive growth in the medium- and large-sized OLED market. Industry sources indicate that the market for notebook OLED panels has flattened, prompting players to seek a spark.

As the fourth quarter of 2025 begins, Taiwan's leading panel manufacturers are experiencing a notable slowdown in demand, shaped by the typical seasonal downturn and ongoing economic uncertainties. All four of the island's major panel producers recorded reduced revenues in October 2025 amid a sluggish global display market. Au Optronics (AUO) reported a consolidated revenue of NT$20.92 billion (US$675 million) for October, a 14.4% decrease compared to September but a slight 0.2% increase year-on-year. Similarly, Innolux Corporation posted NT$18.2 billion, reflecting an 8.33% monthly drop yet a 7.76% rise from the same month last year.

As cars become rolling digital platforms, the display has become one of the most fiercely contested frontiers for screen makers. Much like the evolution of televisions, the auto industry is now witnessing a duel between two advanced display technologies—Mini LED backlighting and OLED panels—each finding loyal allies among global automakers.

During what is typically peak season, panel makers AU Optronics (AUO) and Innolux both posted operating losses in the third quarter of 2025 due to the appreciation of the New Taiwan dollar and falling panel prices. On the bright side, both companies were overall profitable in the first three quarters of the year. However, in the fourth quarter, both AUO and Innolux expect demand to further weaken as the market enters the traditional off-season.

Touch panel maker TPK Holding posted stronger-than-expected earnings for the third quarter of 2025, driven by a better product mix and rising e-reader demand.

Au Optronics (AUO) reported a swing to loss in the third quarter of 2025, citing weaker-than-expected panel seasonality and foreign exchange losses. The company warned that industry utilization rates could fall further in the fourth quarter but maintained optimism about a healthier panel supply-demand balance in 2026, alongside a substantial cut in capex.

China's leading display manufacturer, BOE, is accelerating its deployment of 8.6-generation OLED production. The first phase of investment is nearly complete, and the company is preparing for the second phase of equipment procurement. By speeding up its investment timeline, BOE is positioning itself to catch up with Samsung Display (SDC) and potentially challenge its market dominance in the OLED sector.

LCD TV panel demand is losing steam in late 2025 as China's subsidy-driven momentum fades and early shipments distort seasonal patterns, leading to weaker fourth-quarter 2025 procurement and sustained downward pressure on large-size panel prices.

As the fourth quarter begins, IT panel demand has entered its usual seasonal lull, with shipments expected to fall from third-quarter levels. Notebook panel prices are forecasted to soften slightly as manufacturers brace for a challenging 2026 while anticipating a potential rebound driven by AI-enabled PCs.

Apple's iPhone 17 series has surpassed sales expectations, with South Korean manufacturers dominating the supply of its crucial OLED panels. Meanwhile, China's largest panel maker, BOE Technology Group, has struggled with quality issues, disrupting its deliveries and likely forcing further cuts to its originally planned supply.

A US federal court jury in Texas has found Samsung Electronics liable for infringing patents related to OLED technology and ordered the company to pay damages totaling approximately US$191.4 million. The verdict stems from claims brought by Pictiva Displays, an Irish subsidiary of patent licensing firm Key Patent Innovations, involving Samsung's use of specified OLED patents in its consumer electronics.

AUO's profits turned to losses in the third quarter of 2025, but the company still maintained profitability for the first three quarters. The second half of the year is expected to be weaker than usual, with the traditional off-season in the fourth quarter, but 2026 has the potential to bring positive developments.

LG Display (LGD) has successfully reversed previous losses for the third quarter of 2025, posting an operating profit of KRW431 billion (US$308 million) in its latest financial report. This improvement is attributed to LGD's strategic shift toward OLED panels, with OLED revenue accounting for a record 65% of total sales, significantly boosting profitability.

Although Chinese panel manufacturers have recently gained market share, their profitability has been weak due to the high proportion of low-priced products. In contrast, South Korean companies are improving their business structure by focusing on OLED and high-end panel products.

As holiday seasons approach, including China's Singles' Day and Black Friday in Europe and the US, the smartphone panel market has maintained high utilization rates in the fourth quarter of 2025, though price trends have diverged across different panel technologies.

Although the LCD industry supply chain has begun moving from China to Vietnam in the past two years, front-end panel processes remain mainly in China or Taiwan. Sarah Lin, president of Coretronic Corporation, stated that the influx of Chinese component and module suppliers building capacity in Vietnam has created a major test for Vietnam's factory construction speed, human resources, and local culture. After building a new factory in the first half of 2025, Lin believes that Vietnam's manufacturing efficiency is lower than China's.

The third-quarter earnings season for the industry has begun, led by Powertip Technology, followed by Coretronic. The main events are set for October 30, when major names including LG Display (LGD), AUO, Radiant Opto-Electronics, and BenQ Materials will hold their briefings.

Vietnam has grown significantly into a hotspot for companies from South Korea, China, Singapore, and Taiwan to set up factories. The escalation of US-China trade tensions has caused a rapid flood of Chinese companies to expand to Vietnam, drawing significant attention from South Korean businesses already established in the country.

Apple has hit fresh roadblocks in its ambitious attempt to reinvent the iPad with a giant foldable display, according to multiple reports. The device, internally code-named J312, was originally targeted for a 2028 launch, but now, engineers and industry watchers believe it may not arrive until 2029, or possibly never.

China's national subsidy program is nearing its end, and consumer spending momentum has slowed down. During the National Day holidays, TV sales volume and prices both declined. With weakening panel pull-in momentum, the industry is not optimistic about TV sales for the upcoming Singles' Day shopping festival.

LG Display (LGD) is reportedly planning to invest in production line conversion in 2026 for Apple's next-generation iPhone. According to the latest reports from Korean media, LGD began placing orders for related equipment in the fourth quarter and is expected to start installing them in the first quarter of 2026.

AI's rise is boosting demand for PC displays and sustaining stable growth across IT panels, including tablets, monitors, and notebooks, with annual panel shipments expected to reach 650 million units in 2025.

BOE Technology, China's top display maker, is rapidly scaling its OLED presence. In the first half of 2025, BOE shipped 71 million OLED panels, cementing its lead in China and securing second place globally. While strengthening its grip on small-sized displays, BOE is now aggressively expanding into mid- and large-sized IT OLEDs, signaling a direct challenge to Samsung Display's dominance in the premium segment.

China leads in LCD TV panel production, with BOE and TCL CSOT expected to control over 72% of the market by 2026. Over the past decade, global LCD TV panel capacity has become highly concentrated in China, which also hosts the world's largest number of 10.5-generation panel production lines. The first-ever 10.5-generation panel factory depreciation will complete in 2025, with at least one more 10.5-generation plant expected to finish depreciation annually thereafter, further enhancing cost advantages for related products.