Why Apple & Samsung go to Flexible Display

July, 2013

-Sooner than most of us have expected

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

manufacturer’s profit

• The profit crunch of Smartphone component manufacturers will be more than

severe

• Current Smartphone hardware without a technical disruption will be a 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 roll-able or foldable display

• Apple and Samsung have no choice but to go flexible display due to squeezing

Smartphone profit

* ASP(Average Selling Price)

Apple’s 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’s mobile dependency 1

0

5

10

15

20

25

30

35

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

IM CE Semicon DP

Samsung Electronics Sales Growth By Biz. Division Unit: Trillion Won

CE : Consumer Electronics, IM: IT & Mobile Communications, DS: Device Solution, DP: Display Panel

Source: http://www.samsung.com/us/aboutsamsung/ir

Samsung’s Mobile business dependency is exponentially growing

Samsung’s mobile dependency 2Samsung earns their profit mostly from Mobile business as well

-1

0

1

2

3

4

5

6

7

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

IM CE Semicon DP

Samsung Electronics Operation Profit Growth By Biz. Division Unit: Trillion Won

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

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

Apple iPhone5 16GB ASP $649

BOM 207$

Apple iPhone5 16GB ASP under $200

BOM ?$

Smartphone ASP could decline up to almost $200 by 2016 and leave no room for profit

Smartphone Bill of Materials as of 2012

Samsung’s BOM/ASP ratio is narrower than their competitor , Apple

Samsung Galaxy S4 BOM

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

Samsung’s Initiative on Rollable & Foldable displaySamsung has no choice but soon to go flexible display due to profit crunching

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

Apple iPhone5 16GB ASP $649

BOM 207$ BOM estimated to be about 220~230$

Samsung Galaxy S4 ASP about

less than iPhone 5

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

Samsung and LG display’s display panel market woeKorean display giants Samsung and LG Display need new display form factor

Source: http://www.advancedtechnologykorea.com/5338/

Source: Gartner, http://www.gartner.com/newsroom/id/2408515Materials and System internal estimation

8

SmartphoneTablet

Notebook

Phablet

Mobile Device Market as of 2013 Mobile Device Market with Flexible Display

‘13 World Wide shipment of mobile devices: 2.69 billion units

Smartphone withflexible display

Notebook

World Wide annual shipment of mobile devices:

more than 2.69 billion units

Convertible PC?

Convertible PC

Flexible display will tear down barriers among mobile devices

Smartphone with flexible display will kill all tablet and significant portion of notebook

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

•Barrier Breaker between

Smartphone and tablet

•To be mass produced

•Material technical disruption

•Barrier Breaker between

Smartphone and notebook

•To be mass produced

True technical disruption on roll-able or foldable

Roll-able 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

Conductive NanofiberConductive Nanocoating

Our conductive electronic materials are… Our conductive materials are water repellent, conductive and flexible

Conductive

Ball

Who we are?

Materials and System is Silicon Valley based high tech venture company with

revolutionary nanofiber based flexible display material mass production technology

Thank You!

Tel: 408-519-2267

eMail: jayhah7@gmail.com

Skype: jayhah7

3003 N. 1st Street, Suite 221

San Jose, CA 95134, USA