Mobile Phone Display Shipments to Improve through 2009, Says DisplaySearch

Aug 6, 2009 15:31 Nikkei Electronics Asia

While mobile phone display shipments in developed nations such as the US, Europe and Japan slipped in Q1 2009 due to seasonality and the weak economy, this segment is expected to improve through 2009 due to relatively strong demand for smart phones, video capabilities and the growing China mobile phone market.

According to DisplaySearch, total mobile phone display shipments fell 11% Q/Q and 19% Y/Y in Q1 2009 to 263 million units, but are forecast to increase to 306 million units in Q2 2009 and 360 million units in Q3 2009.

"Growth in mobile phone display shipments will be driven by demand from major mobile phone manufacturers such as Nokia, Samsung, LG, Sony Ericsson and Motorola, as well as Chinese brands including Huawei, ZTE as well as Tianyu and white box manufacturers," said Hiroshi Hayase, DisplaySearch's director of Small/Medium Display Research. "In addition, the availability of low cost mobile phones in these regions will also contribute to the anticipated growth for this segment."

More than 20% of mobile phone displays were shipped to Chinese brands and white box manufacturers, who are mainly in China. White boxes are unbranded mobile phones designed to be similar to popular designs by top-tier brands such as Nokia, Samsung and Apple. Produced in China-based manufacturing facilities, these 'knock-offs' are sold at significantly lower price points.

The total amount of mobile phone displays shipped for the China market is expected to exceed display shipment amount for Samsung Telecom. As a result, the demand for mobile phone displays will increase.

The number of mobile phone shipments reached 276.1 million in Q1 2009. Nokia retained its top position with 31.7% share, up slightly from 31.2% in Q1 2009. The no.2 and no.3 brands were Samsung and LG. Motorola continued a long-term share decline. Emerging China mobile phone brands including Huawei, ZTE and Tianyu increased their share of mobile phone displays purchased by 1.5%-2%, increasing their mobile phone rankings.

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