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ASUS’ Smartphone Ambitions Set To Slow With OLED Shortage

According to reports out of Digitimes, Asustek may be the first victim of the industry-wide shortage in OLED displays.

The final quarter of 2016 saw Asustek fall short of the company’s goal of shipping 25 million smartphones.

Sources told Digitimes that “Asustek’s shipments of smartphones still remained in the doldrums in the first quarter of 2017, forcing the vendor to scale back its purchases of parts and components.”

What’s more, they say that “efforts by Asustek to accelerate into the mid-range to high-end segment have also been undermined by an insufficient supply of OLED panels.

The Digitimes report says that “Asustek has been seeking to buy OLED panels from China-based Tianma Micro-electronics as it has failed to secure the supply of needed panel products from Samsung Display.”

While ASUS does not have a massive presence in the Australian smartphone market, the underlying issues could prove to have a similar effect on other companies like Oppo, Huawei and HTC.

As previously reported, a sizeable gap between supply and global demand for OLED panels will play a major role in shaping the ability of smaller players to compete with giants Apple and Samsung.

Samsung Display currently produces 95% of OLED displays for smartphones and reportedly signed an order to produce 70 million panels for Apple earlier this week.

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