Northeast Securities released a research report stating that Samsung is actively preparing for the A57 phone scheduled for release in 2026, with plans to adopt OLED screens produced by both Samsung Display and TCL CSOT. The entry of Chinese OLED manufacturers into Samsung's mobile phone supply chain is highly significant. Judging from the recent patent settlement between BOE and Samsung, Chinese manufacturers have shaken off their reliance on overseas technology and are poised to win favor with international clients through their cost and innovation advantages. As shipments to overseas customers increase in the future, the profitability of domestic OLED panel manufacturers is expected to see significant improvement. The firm recommends leading domestic panel makers BOE A (000725.SZ) and TCL Technology Group Corporation (000100.SZ).

The core views of Northeast Securities are as follows: On December 30th, consulting firm CINNO reported that Samsung is considering procuring OLED screens produced by BOE for its latest S-series flagship phones. Korean media outlet Thelec reported that Samsung is actively preparing for the A57 phone, slated for a 2026 release, and plans to use OLED screens from both Samsung Display and TCL CSOT. This decision breaks the long-standing pattern of Samsung Display being the exclusive supplier of OLED screens for the A-series, marking a milestone event as domestic panel manufacturers enter the supply chain for Samsung's key mid-range models for the first time.

The inclusion of Chinese OLED manufacturers in Samsung's mobile supply chain carries profound implications. Samsung has long maintained the top position in global smartphone shipment volume and market share. In Q3 2025 (IDC data), its shipments reached 61.4 million units, a year-on-year increase of 6.3%, securing a 19% market share and the global top spot. The mid-to-low-end A-series contributes approximately 70% of its sales volume, while the high-end S-series and Z-foldable series solidify its flagship and innovation benchmark status. Previously, OLED screens for Samsung phones were primarily supplied by its internal affiliate, Samsung Display (SDC). This collaboration with Chinese OLED manufacturers is driven by two main reasons: Firstly, Samsung has a pressing need to further reduce production costs. Recently, prices of key components like processors, camera sensors, and memory have risen, prompting Samsung to actively cut production costs to prevent significant price hikes for its new devices. Secondly, the competitive advantage of Chinese OLED panel manufacturers has surged. In recent years, Chinese panel makers have established synergistic advantages in "capacity + technology + supply chain," leading to a marked improvement in their core competitiveness. On December 30th, BOE successfully lit up China's first 8.6-generation AMOLED production line ahead of schedule, creating a new global milestone for the high-end development of mid-sized OLEDs. The recent patent settlement between BOE and Samsung indicates that Chinese manufacturers have moved beyond dependence on foreign technology and are set to attract overseas clients with their cost and innovation strengths.

Increased shipments to overseas customers will fundamentally alter the competitive landscape of the domestic OLED industry. Previously, domestic manufacturers largely focused on the local market, with competition centered on capacity expansion and price competition. Data from CINNO shows that the price of a 6.7-inch flexible OLED screen (with a hole-punch) dropped continuously from $46 in May 2022 to $21.5 in November 2025. According to the firm's analysis of domestic supply and demand, the domestic OLED industry currently suffers from an overcapacity exceeding 20%. In the global smartphone market, shipments of high-end screens primarily based on LTPO backplane technology are concentrated in products from just two customers, Apple and Samsung, which together account for over 70% of the market. With local clients, Chinese OLED manufacturers could only increase shipment volumes by engaging in price competition, relying on continuous price reductions to boost OLED penetration in the mobile phone market. Gaining entry into Samsung's supply chain will gradually improve the domestic OLED supply-demand dynamics. As shipments to overseas customers rise, the profitability levels of domestic OLED panel factories are poised for significant enhancement.

Risk warnings include potential underperformance in shipments to overseas customers and procurement volumes from domestic panel factories falling short of expectations.