iPhone killers are lifesavers for handset display demand, says iSuppli
Global shipments of QVGA and higher resolution 2.5- to 4.9-inch handset displays are projected to rise to 149.9 million units in 2009, up an impressive 22.1% from 122.8 million in 2008. In contrast, overall shipments of all handset displays are expected to decline by 11% for the year, according to iSuppli.
The new generation of so-called "iPhone killers" is set to drive demand and increase sales of displays commonly used in smartphones in 2009, despite an expected decline in the overall handset display market this year.
While a large number of smartphones use smaller displays and LCDs with other pixel formats, these displays are most likely to be used in high-end, feature-rich products. Thus, their growth provides an accurate picture of growth in smartphone display demand.
"The continued success of Apple's iPhone is driving market demand for competitive products," said Vinita Jakhanwal, principal analyst for small- to medium-size displays at iSuppli. "Companies are rolling out a range of iPhone killers, including new products based on Google's Android operating system. To this end, many OEMs are introducing higher-end, multimedia-enabled phones that include larger displays with superior resolutions."
The rising demand for smartphone displays and the continued strength in demand from the Chinese handset makers are helping propel a recovery in the handset display market, with sequential growth starting in the second quarter, after two consecutive quarters of decline.
Normal seasonal factors, combined with the continued economic downturn and large inventories, caused overall shipments to decline sequentially by 17.4% in the fourth quarter of 2008 and by 8.5% in the first quarter of 2009.
In the second quarter, shipments actually slowed in May compared to April due to a shortage of components such as driver ICs and LCD glass. However, most of this shortage, particularly for driver ICs, was resolved by June, allowing handset display shipments to rise by 4.6% in the second quarter.
"Early indicators from the Taiwanese small- to medium-size suppliers are pointing to a strong third-quarter performance," Jakhanwal said. "The Taiwanese vendors are significant suppliers to the Chinese handset makers for both the branded and white-box markets. Incentives from the Chinese government have helped boost demand for consumer electronics, including handset, in rural China. The government is looking at expanding this program further."
The new generation of so-called "iPhone killers" is set to drive demand and increase sales of displays commonly used in smartphones in 2009, despite an expected decline in the overall handset display market this year.
While a large number of smartphones use smaller displays and LCDs with other pixel formats, these displays are most likely to be used in high-end, feature-rich products. Thus, their growth provides an accurate picture of growth in smartphone display demand.
"The continued success of Apple's iPhone is driving market demand for competitive products," said Vinita Jakhanwal, principal analyst for small- to medium-size displays at iSuppli. "Companies are rolling out a range of iPhone killers, including new products based on Google's Android operating system. To this end, many OEMs are introducing higher-end, multimedia-enabled phones that include larger displays with superior resolutions."
The rising demand for smartphone displays and the continued strength in demand from the Chinese handset makers are helping propel a recovery in the handset display market, with sequential growth starting in the second quarter, after two consecutive quarters of decline.
Normal seasonal factors, combined with the continued economic downturn and large inventories, caused overall shipments to decline sequentially by 17.4% in the fourth quarter of 2008 and by 8.5% in the first quarter of 2009.
In the second quarter, shipments actually slowed in May compared to April due to a shortage of components such as driver ICs and LCD glass. However, most of this shortage, particularly for driver ICs, was resolved by June, allowing handset display shipments to rise by 4.6% in the second quarter.
"Early indicators from the Taiwanese small- to medium-size suppliers are pointing to a strong third-quarter performance," Jakhanwal said. "The Taiwanese vendors are significant suppliers to the Chinese handset makers for both the branded and white-box markets. Incentives from the Chinese government have helped boost demand for consumer electronics, including handset, in rural China. The government is looking at expanding this program further."
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