Why Apple & Samsung go to Flexible Display

-sooner than most of us have expected

July, 2013

MATERIALS

SYSTEM

Executive Summary
Apple and Samsung are heavily dependent on their mobile business Smartphone ASP* could decline up to almost $200 by 2016 and leave no room for manufacturers profit

The profit crunch of Smartphone component manufacturers will be more than severe
Current Smartphone hardware without a technical disruption will be red ocean Around Yr 2016 there would be new Smartphone hardware platform with roll-able display Flexible display with curbed form factor such as wristband type display will be short lived due to rollable or foldable display Apple and Samsung have no choice but to go flexible display due to squeezing Smartphone profit
* ASP(Average Selling Price)

Apple mobile dependency

Apple makes most of their revenues from iPhone and iPad, i.e., mobile

Source: http://techcrunch.com/2013/04/23/apple-q2-2013-earnings/

Samsung mobile dependency

Samsungs Mobile business dependency is exponentially growing
Unit: Trillion Won

Samsung Electronics Sales Growth By Biz. Division

35

30

25

20

15

10

0 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13

IM

CE

Semicon

DP

CE : Consumer Electronics, IM: IT & Mobile Communications, DS: Device Solution, DP: Display Panel Source: http://www.samsung.com/us/aboutsamsung/ir

Samsung mobile dependency

Samsung earns their profit mostly from Mobile business as well Samsung Electronics Operation Profit Growth By Biz. Division
Unit: Trillion Won 7 6

5
4 3 2 1 0 1Q '11 -1 IM CE Semicon DP 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13

CE : Consumer Electronics, IM: IT & Mobile Communications, DS: Device Solution, DP: Display Panel Source: http://www.samsung.com/us/aboutsamsung/ir

Smartphone BOM/ASP* as of 2012 to 2016

Smartphone ASP could decline up to almost $200 by 2016 and leave no room for profit
Apple iPhone5 16GB ASP $649 Apple iPhone5 16GB ASP under $200

BOM 207$ BOM ?$

* BOM (Bill of material)/ ASP(Average Selling Price) Source: http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/

Smartphone Bill of Materials as of 2012

Samsung Galaxy S4 BOM

Samsungs BOM/ASP ratio is narrower than their competitor , Apple

Source: http://www.pcmag.com/article2/0,2817,2416792,00.asp

Samsungs Initiative on Roallbe and Foldable display

Samsung has no choice but soon to go flexible display due to profit crunching
Apple iPhone5 16GB ASP $649 Samsung Galaxy S4 ASP about less than iPhone 5

BOM 207$

BOM estimated to be about 220~230$

* BOM (Bill of material)/ ASP(Average Selling Price) Source: http://innovationcenter.deteconusa.com/article/smartphone-pricing-war/

Samsung strategic initiative on their samrtphone BOM

Increase Application Processor production & in-source

Lead 5G communication
technology standard

Disrupt current display technology with novel materials Lead flexible display with all its

components in-sourcing

Continuous in-production process improvement Continuous const reduction through in-production innovation

Top Five Smartphone Sellers of China

Chinese Smartphone manufacturers are catching up with Apple and Samsung

Source: http://europe.chinadaily.com.cn/business/2013-01/29/content_16183505.htm

Flexible Display, so what?

Flexible display form factor has not too much of user benefits except WoW

Various Form factors of Flexible Display

Flexible Display

Rollable Display

Foldable Display

On Curbed Surfaces Wearable computers Mass production stage Samsung, LGD & etc

True technical disruption

Material technical disruption Barrier Breaker between Smartphone and notebook To be mass produced

Barrier Breaker between

Smartphone and tablet To be mass produced

True technical disruption lies in rollable or foldable display

Rollable or foldable display is yet a concept but soon to be commercialized

Source: http://www.core77.com/blog/technology/a_smartphone_with_a_flexible_display_remains_a_concept_for_now_24223.asp

Who we are?
Materials and System is 5 year old Korean high tech venture company with revolutionary nanofiber based flexible display material mass production technology

Conductive Ball

Thank You!
1-306 innoplex, 306 Shinwon-ro Yeongtong-gu, Suwon-si, Gyeongggi Korea, 443-380 Tel. +82-31-203-8293 Fax. +82-70-7613-3666 Business inquiry Jay S. Ha, Biz. Development Tel : 82-70-7847-8882 Email: blold@me.com Skype : jayhah7