Text/JING Audit/Zi Yang Correction/Zhi Qiu
2017 was a turning point in the development of China's display panel industry, not only the revenue reached 200 billion, but also the display panel shipments exceeded South Korea, ranking first in the world.
At the same time, a dark horse began to appear frequently in front of the eyes of the Chinese people. BOE shipments reached the apex of the industry, successfully built the sixth generation of AMOLED production line, breaking the monopoly of Samsung technology.
The birth of the king of domestic panels
Since then, BOE has become a representative of China's screen industry. Whether it is revenue, shipments, product quality or brand influence, BOE ranks first in China. However, although BOE is currently unlimited, from the 90s of the last century to the first decade of the 21st century, BOE has been "looked down upon" by the Chinese people.
It is reported that BOE, formerly known as Beijing Electron Tube Factory, was the largest electron tube production base in Asia in the 1960s. However, with the continuous advancement of technology, electron tube technology has gradually been replaced by semiconductor technology, and Beijing Electron Tube Factory has lost money year after year, ushering in an existential crisis.
In this context, Wang Dongsheng led the Beijing Electron Tube Factory to carry out institutional and technological reforms. In just one year, BOE turned a profit, but in fact, the problem of BOE's backward technology has not been solved.
In the 1990s, foreign brands entered the Chinese market one after another, and BOE gradually realized the importance of self-research of technology.
After more than a decade, BOE acquired overseas enterprises and reserves technology, while increasing research and development efforts to break monopolies. The relevant departments have been burning money subsidies for more than a decade, and it is also during this period that BOE has been madly complained about. Fortunately, judging from the results, BOE did not disappoint.
With his back to the apple, he managed to get out of the loop
In fact, BOE can be well known to the Chinese people, mainly thanks to two manufacturers, one is Huawei, the other is Apple. Huawei is the first company to use BOE's high-end screen on its flagship machine, helping BOE quickly gain a foothold in the smartphone market.
Apple has made global users more aware of BOE, and also allowed BOE to use Apple's supply chain corporate identity to get more customer attention.
After the fall of Huawei's mobile phone business, BOE can continue to maintain high heat and continue to go out of the circle, and Apple is indispensable.
Of course, in essence, the fundamental reason is that BOE is strong enough. BOE's folding screen technology and off-screen lens technology are outstanding, and BOE has been investing heavily in upgrading the production line's production capacity.
For example, in January 2021, BOE raised 20 billion yuan to build the AMOLED flexible production line project. Combined with the latest reply of the Secretary of the Board of Directors, the production line has been completed at present, and the production capacity is continuously increasing.
It is worth mentioning that BOE not only provides a screen for Apple's mobile phones, but also extends its tentacles to other products. It is reported that BOE is adjusting the third phase of the B12 factory production line, and it will most likely be used for iPad production in the future.
Not only that, as Apple accelerates the speed of car manufacturing, BOE is expected to take advantage of production capacity to pocket Apple's car display orders.
Although many media have said that it is not a good thing to rely too much on Apple, Lens Technology has also proved this view with its own experience. But for BOE at this stage, the advantages of strengthening cooperation with Apple outweigh the disadvantages.
One year's profit is worth ten years
Apple not only has a large order volume, but also purchases high-end products, and BOE can obtain higher profit margins. Therefore, working with Apple has considerable help for BOE's performance.
According to BOE's 2021 annual report, BOE's total revenue last year was between 215 billion and 220 billion, an increase of more than 59% year-on-year. The company's profit is more than 25.7 billion, more than four times higher than in 2020, and the sum of the profits of the past decade.
Of course, BOE can achieve this result, not all Apple credit. In addition to Apple, BOE has also established cooperative relations with many giant customers such as Samsung, Xiaomi, OPPO, and Honor. In addition to OLED displays, there are also a variety of LCD displays.
In addition, the industry is also in an upward cycle, and the market prosperity has increased significantly compared with the same period in previous years. A variety of factors work together to make BOE's revenue and profit increase significantly.
With the advent of the intelligent era, the screen market continues to expand, and BOE's various data have repeatedly reached new highs. Official data shows that in December 2021, BOE's monthly shipments exceeded 10 million for the first time, which is both a perfect ending and a new beginning for BOE.
Write at the end
On the whole, BOE has established technical advantages and production capacity advantages in the industry, and in the context of domestic substitution, it is expected to eat the biggest dividend of industrial intelligent development.
Of course, BOE is also facing a lot of challenges, not only the old giants will give strong competitive pressure. Many companies behind us are also eyeing BOE's market share, in your opinion, can BOE create new records and reach new heights?