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Handset display shipments to grow 17% in 2006

Posted: 09 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:forecasts? cellphone? handset displays? iSuppli? mobile display?

Mobile handset display shipments will reach 1.2 billion units in 2006, up 17 percent from 1.05 billion units in 2005, according to a recent forecast from iSuppli Corp.

The market research firm credited the anticipated increase in 2006 shipments to the number of new mobile phone models with multimedia capabilities vying to attract the interest of consumers.

"The convergence of voice, data, multimedia and personal-information-management capabilities is expanding in mobile phones and the handset industry is readying itself to offer products with these visually intensive features," said Vinita Jakhanwal, principal analyst for mobile displays at iSuppli. "This, in turn, is driving the demand for advanced mobile displays from OEMs that want to offer these capabilities."

Jakhanwal said iSuppli forecast that mobile display shipments will continue to grow an additional 4 percent in 2007, reach 1.3 billion units.

According to iSuppli, color main displays accounted for 74 percent of the total mobile handset display market in 2005 and will likely comprise nearly 77 percent of the market in 2006. This number will grow to nearly 98 percent by 2010 as virtually every handset will be equipped with at least one type of color display, iSuppli said. Monochrome displays will still exist, but will be used as secondary screens in mobile handsets, the firm said.

For the TFT-LCD, color STN-LCD and monochrome STN-LCD displays, iSuppli's 2006 unit growth forecast is 58 percent, 20 percent and 20 percent, respectively. Organic light-emitting diode (OLED) main displays will represent a mere 1 percent of the main display market this year, iSuppli said.

But by 2010, the firm expects the mix to change, with TFT-LCDs representing 87 percent of the market, monochrome and color STN-LCDs comprising only 4 percent of shipments and 9 percent of the market being served by OLED main displays. Demand for mobile TFT-LCD panels in the handset market is driven by rapid drops in prices and growth in the camera phone and higher-end handset markets, iSuppli said. This demand is being supported by the increased availability of the panels because older fabrication facilities that previously made large-sized LCDs now are free for making smaller-size products, according to the firm.

iSuppli expects the availability of TFT-LCDs to play a role in helping launch the digital video broadcasting format in Asia and Europe that will enable television to be watched on handsets.

While TFT-LCDs will thrive in the mobile handset display market in the coming years, overall mobile OLED panel shipments will slowly climb to reach 47 million units shipped in 2006, up from 32 million units in 2005, iSuppli said. The largest growth area for mobile-phone OLEDs will be in the main display market, where iSuppli forecasts shipments will grow to 160 million units by 2012, up from a mere 13.7 million units in 2006.

- Dylan McGrath
EE Times




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