Chinese Phone Display Module Makers Adding Price Pressure to Competitive Market

Competition among mobile phone display module makers will heat up this year as shipments are forecast to grow 4 percent year over year to reach 2 billion units, said research firm IHS. Chinese display module makers have resolved to increase their share of shipments, and in Q3 BOE unseated Samsung Display as the leading mobile display supplier, said IHS. “BOE has benefited not only from Samsung’s LCD outsourcing strategy but also by aggressively developing direct relationships with Chinese mobile phone makers,” said Terry Yu, senior analyst. In addition to BOE, Tianma and InfoVision are targeting their G5 capacity to the mobile phone market, with a focus on a-Si (amorphous silicon)-based types, said Yu. Chinese display module makers also plan to increase market share in the high-end mobile phone display market, said Yu, citing BOE, Tianma and China Star’s G6 LTPS investment plans announced last year. OLED module makers have been aggressively promoting AMOLED products in China, with the average price for 5-inch HD (1280 x 720 294 PPI) AMOLED modules in China’s open market dropping from $43 in Q1 last year to $25 this quarter, he said. Local Chinese brands are “simplifying their handset models, in order to achieve better revenue performance,” he said.