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OLED sales to fall short, says iSuppli

Posted: 12 Oct 2004 ?? ?Print Version ?Bookmark and Share

Keywords:lcd? isuppli? oled? stn-lcd?

Rising competitive pressure from lower cost liquid crystal displays (LCDs) is putting a crimp on unit sales and revenue for organic light-emitting diode (OLED) displays, according to a report by market research firm iSuppli Corp.

Global shipments of OLED displays are projected to reach 35.3 million units this year, up from 16.8 million in 2003 but short of the 36.2 million units originally projected, the firm said.

OLED revenue is expected to reach $429 million, up from $246 million last year but down from the $470 million forecast earlier.

iSuppli still expects OLED shipments to gather steam in coming years, reaching 289 million units by 2010.

According to iSuppli, the current shortfall in OLED sales stems from makers of mobile phone sub-displays opting for super-twisted-nematic (STN) LCDs instead of OLEDs to lower their bill-of-material costs. Mobile phones are expected to remain the largest application for OLEDs during the current decade.

OLED suppliers have in turn cut prices, hoping to stimulate year-end sales, though many have realized OEMs remain unwilling to pay a premium for OLED displays, said iSuppli.

OLED technology continues to undergo growing pains as suppliers struggle to improve production yields and bring down costs. Though some companies, such as Sony Corp. are beginning to ramp up production, others, such as NEC Corp., have exited the business.

In addition, iSuppli noted that several active-matrix OLED products scheduled for release this year have been delayed until 2005, further extending the timeline for achieving high market revenue.

- Spencer Chin

EE Times

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