Sigmaintell reports that in Q1 2026, domestic G6 flexible OLED production line utilization rates faced overall pressure due to multiple factors. Firstly, inventory built up by the end of 2025 has not been fully digested, leading to a significant slowdown in procurement by end-device brands during the quarter. Secondly, global smartphone demand has declined overall, resulting in a continuous contraction of order volumes. Under these combined pressures, the average utilization rate for domestic G6 flexible OLED lines in Q1 2026 was approximately 69%, a notable decrease from 80% in Q4 2025. Utilization rates across nearly all domestic panel production lines showed varying degrees of decline, with the industry operating at a generally low-to-mid level, indicating a widespread weakening trend.
Sigmaintell anticipates that entering Q2 2026, although restocking demand for mid-to-low-end models from certain individual brands has shown signs of recovery, providing some temporary support for industry utilization, the overall demand for end-device units remains under downward pressure. This is expected to make it difficult for the average utilization rate of domestic G6 flexible OLED lines to rebound, with a projected slight sequential decline of about 2 percentage points to approximately 67%, keeping the overall operating trend largely consistent with Q1.
Data from Sigmaintell shows that global smartphone panel shipments in Q1 2026 reached about 560 million units, representing a year-on-year increase of roughly 2.4%. This growth was primarily driven by two factors. First, a core driver was increased procurement of a-Si LCD panels and flexible OLED panels by the repair market in South China. Second, sales growth for Apple and Samsung end-devices boosted shipments of flexible OLED panels.
In the current smartphone panel market, demand for end-device units continues to weaken. While LCD panels can rely on demand from medium-sized applications like automotive and IT to hedge against this trend, the average utilization rate for flexible OLED production lines is unlikely to recover to high levels in the short term, and competition among domestic panel manufacturers is intensifying. Concurrently, storage chip prices have risen more sharply than expected, significantly weakening the appeal of price differentials between different panel technology solutions for end-device brands. The industry's competitive logic is shifting from cost orientation to value-driven strategies. For some projects, brands are increasingly inclined to enhance product competitiveness to drive unit sales growth and price increases, thereby alleviating operational pressures from rising upstream costs.
Sigmaintell believes that against this backdrop of prolonged pressure, the display product planning of end-device brands is undergoing a new shift. The competitive focus for some projects is moving further away from simple panel cost competition towards a comprehensive consideration of display performance, user experience, and differentiation capabilities. High-end flexible OLED panels featuring high refresh rates, high brightness, and low power consumption are becoming a core lever in product competitiveness. The further downward penetration of this technology is expected to provide crucial support for a recovery in flexible OLED panel production line utilization rates.