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Analyst predicts rising HD panel demand for notebooks

Posted: 13 Jan 2016 ?? ?Print Version ?Bookmark and Share

Keywords:IHS? notebook? panel? tablet? FHD resolution?

IHS Inc. has revealed that the global notebook panel demand plunged 12 per cent YoY in 2015 to reach 176 million units. As such, with demand for notebooks stagnating due to the economic downturn and the rise of tablet PCs, notebook brands and panel makers are increasingly turning to higher display resolutions to increase consumer enthusiasm.

With notebook inventory piling up, brands and panel makers are hoping that upgrading the display resolution of their product lines will spur more demand growth. Full high-definition (FHD) panels will comprise 20 per cent of the notebook market in 1Q16, growing to 30 per cent in 3Q16.

"Panel makers for notebook PC brands remain conservative in their 2016 outlook, and they are looking for economical ways to increase sales and reduce backlogged inventory," said Linda Lin, senior analyst of display research for IHS Technology. "After panel prices crashed to the break-even point in 4Q15, lowering prices to increase panel demand is no longer an option, so upgrading features is the only option left."

NB panel penetration rate by resolution

IHS said that with demand for notebooks slowing due to the weak economy and the rise of tablets, notebook makers are increasingly turning to higher display resolutions to boost consumer interest.

According to the IHS Large Area Display Market Tracker, resolution upgrades are simple for consumers to recognise. Also, lower panel prices now mean the upgrades can be made more easily and affordably, for notebooks. In fact, the panel cost gap between HD displays and FHD displays narrowed to just $10 dollars in 2015. "Increasing resolutions above the FHD level is the next trend to watch for in notebook display products," Lin said.

Samsung Display and LG Display are both leaders in promoting FHD resolution notebook displays with in-plane switch (IPS), wide-view angle and low-colour shift technology. "These two leading South Korean panel makers are promoting their FHD IPS displays, targeting the high-end notebook PC segment, so that they can more efficiently manage the panel price gap between FHD IPS and general specification panels," Lin said.

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