Mobile phone display market returns to growth

The market for mobile phone displays will grow after slipping back in the the first quarter of the year, according to DisplaySearch.

The analyst firm said total mobile phone display shipments fell 11 per cent quarter-on-quarter and 19 per cent year-on-year in the first quarter of 2009 to 263 million units, but are forecast to increase to 306 million units in Q2 and 360 million units in Q3.

“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 and 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 per cent 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, the white-box versions 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.

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