AMOLED to Enjoy 55.1% CAGR in 2009-2014: iSuppli

Taipei, July 14, 2010 (CENS)--Short supplies of small-sized active matrix organic light emitting diode (AMOLED) displays are slowing the display technology's bid to challenge the dominance of the incumbent AMLCD (liquid crystal display) technology in the smartphone market, according to iSuppli Corp.

AMOLED displays are used most notably in Android smartphone models, according to the global leader in technology value chain research and advisory services.

Shipments of small-sized AMOLEDs used in cellphones and other applications are projected to reach 184.5 million units by 2014, up from 20.4 million units in 2009, for a Compound Annual Growth Rate (CAGR) of 55.1% during the period, iSuppli's revised forecast said. While such growth is impressive, the AMOLED shipments pale next to small-sized AMLCDs, which are forecasted to rise to 1.75 billion units by 2014 from 1.3 billion in 2009.

"Starting with the Nexus One introduced in January, Android-based smartphones have aggressively adopted high-quality AMOLED displays as a competitive differentiator against the advanced-technology AMLCD screen used in the iPhone," said Vinita Jakhanwal, principal analyst at iSuppli. "However, rising demand-combined with a limited supply base-has led to the constrained availability of AMOLEDs."

AMOLEDs offer a number of advantages compared to AMLCDs. First, AMOLEDs use no backlights, so they offer potential power-savings benefits compared to AMLCDs. Second, the elimination of backlights also makes AMOLEDs very thin relative to AMLCDs. Finally AMLCDs also offer superior performance, with better fast motion display and a richer color gamut compared to AMOLEDs.

At present, Samsung Mobile Displays (SMD) and LG Displays of South Korea represent the only sources for AMOLED panels. SMD is investing US$2.2 billion in its AMOLED facility by 2012 to ramp up production, while shipments now are limited at LG as the company has yet to increase production. In addition to the Korean players, Taiwan-based AU Optronics Corp. (AUO) and TPO Display Corp. are planning to introduce AMOLED products at the end of 2010 or early 2011, but both companies are not shipping any significant quantities at this time.

Small-Sized AMOLED and Small Sized AMLCD Panel Unit Shipment Forecast (Thousands of Units)
	2009	2010	2011	2012	2013	2014	CAGR
AMLCDs	1,286,919	1,486,452	1,590,872	1,697,113	1,729,234	1,754,807	6.4%
AMOLEDs	20,524	47,827	74,811	110,313	142,697	184,479	55.1%
Source: iSuppli Corp. July 2010