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Touch Displays Driving Mobile Phone Displays

8/10/2010 10:39:45 AM Eastern

Santa Clara,
Calif. - The mobile phone display market is set to grow by 14 percent this
year, DisplaySearch said.

In 2010 shipments
are forecast to reach 1.68 billion units, according to the latest DisplaySearch
Quarterly
Mobile Phone Shipment and Forecast Report
.

In Q1 2010, mobile
phone display shipments fell 9 percent quarter over quarter due to seasonality,
but increased 34 percent year over year, reaching 370.5 million units.

"With an average
worldwide market penetration of mobile phones at 70 percent,  manufacturers are eager to introduce new
features, applications and user interface improvements, such as touchscreens,
to ensure continued growth for this segment this year," noted Calvin Hsieh,
research director at DisplaySearch.

"The migration of
various display panel technologies and increasing average display sizes
reflects these trends."

The fall in
shipments, combined with a 4 percent quarter-over-quarter decline in average
selling price, produced a 13 percent quarter-over-quarter revenue decline. AMOLED
displays were the only technology for which revenues increased quarter over
quarter, as both unit shipments and average prices increased. This reflects the
success AMOLED is finding in high-end smart phones. These phones are demanding
larger display sizes, and in Q1, the average screen size for AMOLED passed 3 inches,
larger than TFT LCDs.

Additional report
highlights include that revenue for small/medium TFT LCD displays grew 22 percent
to $2.33 billion  in Q1 2010, as a result
of mobile phone manufacturers switching from CSTN displays to TFT LCD.
Despite this, falling ASPs and oversupply limited the total revenue growth.

Based on the
DisplaySearch analysis of year-over-year growth for Q1 2010, LTPS TFT LCD,
which grew 7.7 percent, and AMOLED, which grew 8.5 percent, have both
experienced significant growth in touch-enabled displays, which require larger
panel sizes. At the same time, a-Si TFT LCD grew 2.3 percent, and is
generally used within the range of entry-level to high-end phones.

Mobile Phone Display Shipment and Forecast

 Source: The NPD Group
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