IPhone 8 a boost for screen firm

Biel Crystal (HK) Manufactory Ltd, the world’s largest producer of screen glass for smartphones, expects a new round of rapid growth for the industry over 2017-19, spurred by the “trend-setting” new design of the iPhone 8.

The new generation of iPhones will be launched in September as the Apple handset celebrates its 10th anniversary and is set to be a “huge difference” from the iPhone 7, establishing a new trend for smartphone screen design, Biel President Yeung Kin-man, told China Daily in an exclusive interview.

“The peak of market demand for outer screen glass, following the new trend, will come in 2018,” Yeung predicted, aiming to increase Biel’s annual output value to HK$50 billion ($6.4 billion) by then, scale. almost doubling the current scale. Based in Huizhou, Guangdong Based province,in Biel Hu producesiz h o u , high-end Guangdong outer province, screen Biel glass produces for Apple high-endand Samsung outer screen smartphones glass for as well Appleas productsand Samsung for some smartphonesdomestic smartphoneas well as makers. products for some domestic smartphoneIt provides makers. between 40 percent It and provides50 percent betweenof the outer40 percent screen and 50 glass percent forof smartphonesthe outer screenin the glass globalfor market, smartphones accordingin theto Yeung. global market, according to Yeung.

Biel is also a world-leading producer of glass panels for watches of both luxury collections like Rolex and smart gadgets like Apple’s iWatch.

But the company’s ambitious growth in its output value will mainly come from its smartphone business, which is expected to contribute between 60 percent and 70 percent of the HK$50 billion output value in 2018, Yeung said.

“Apple, Samsung and domestic smartphone makers like Huawei have all been making great efforts upgrading smartphonescreen designs business, with whichnew is technologiesexpected suchto contributeas flexible betweendisplays and60 fingerprintpercent and identification,” 70 percent of the said HK$50 Nicole billionPeng, output research value directorin 2018,at global Yeung said. consultancy Canalys, adding that “Apple, there are Samsungalready patents and domestic registered smartphonefor the technology makers of embeddinglike Huawei the have fingerprintall been making identificationgreat efforts module upgradingin the screen. screen designs with new technologies“In the smartphonesuch as flexibleindustry, displaysit usuallyand takes fingerprintabout three years for a new design to be put into mass production because manufacturers like Biel need time to upgrade their production lines,” said Jin Di, research manager at IDC China.

“The reason why manufacturers of outer screen glass for smartphones saw their business growth slow down in 2015 and 2016 is they were upgrading production lines. Big brands, especially Apple, are very cautious about putting a new design into mass production, demanding quality and stability,” Jin said.

“The screen manufacturers will embrace peak in growth in the second half of 2018 as they will be capable of mass production by then.”

Biel will continue to expand its production capacity in Huizhou and speed up automation to ensure quality and stability, the company’s president, Yeung, said.

With a total investment moreof more than than HK$36 HK$36 billion, billion, Biel’s Biel’s production production bases basesin Huizhouin Huizhou now now cover cover nearly nearly1.8 million1.8 million square square meters meters and have and have 120,000 120,000 workers. workers.

Another Another 30,00030,000 workers workers will will be be hired hired by by 2018 2018 but but the the manufacturer manufacturer is is shaking shaking up up its labor-intensiveits labor-intensive business business model model with witha goala goalof raisingof raising the automationthe automation level levelin productionin production from from20 percent20 percentto 80 to percent,80 percent, Yeung Yeung said. said.