Apple and Samsung will go into flexible display soon. We have here why they go to flexible display and our company, Materials and System works on nanofiber based flexible display materials for this emerging technology. The market impact of flexible display has been added on this revision.

1. Why Apple & Samsung go to Flexible Display
July, 2013
-Sooner than most of us have expected

2. 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)

3. 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/

4. 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

5. Samsung’s mobile dependency 2
Samsung 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

6. 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

7. Smartphone Bill of Materials as of 2012

8. 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

9. Samsung’s Initiative on Rollable & Foldable display
Samsung 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

10. 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

11. Samsung and LG display’s display panel market woe
Korean display giants Samsung and LG Display need new display form factor
Source: http://www.advancedtechnologykorea.com/5338/

12. Source: Gartner, http://www.gartner.com/newsroom/id/2408515
Materials and System internal estimation
8
Smartphone
Tablet
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 with
flexible 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

13. Flexible Display, so what?
Flexible display form factor has not too much of user benefits except WoW

14. 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

15. 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

16. Conductive NanofiberConductive Nanocoating
Our conductive electronic materials are…
Our conductive materials are water repellent, conductive and flexible

17. 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

18. Thank You!
Tel: 408-519-2267
eMail: jayhah7@gmail.com
Skype: jayhah7
3003 N. 1st Street, Suite 221
San Jose, CA 95134, USA