OLED displays find success in mobile phones with Q2’09 revenue at $192mn

AUSTIN, USA: In its latest Quarterly OLED Shipment and Forecast Report, DisplaySearch reported that worldwide OLED revenue has set a new record, with $192 million in revenue for Q2’09, up 32 percent Q/Q and 22 percent Y/Y.

DisplaySearch forecasts the total OLED display market will grow to $6.2 billion by 2016 from $0.6 billion in 2008, with a CAGR of 33 percent. Mobile phone main displays will be the leading application with revenues of about $3 billion in 2016; OLED TV will be the second largest application, with revenues of about $2 billion in 2016.

Fig. 1: OLED Display Revenue ForecastSource:DisplaySearch Q3’09 Quarterly OLED Shipment and Forecast Report.

AMOLED shipments grew due to strong mobile phone main display shipments. This is due to promotion of AMOLED mobile phones by Samsung Electronics, Nokia and Sony Ericsson in the first half of 2009. More than 15 mobile phone models with AMOLED main displays were released in 2009.

PMOLED maintained its unit shipment leadership in the OLED display market. After a weak Q1’09, PMOLED shipments stabilized in Q2’09 due to growth in mobile phone sub-display applications.

Samsung Mobile Display (SMD) had a strong Q2’09, and as a result, it maintained the #1 position in shipment with 38 percent market share, followed by RiTdisplay at #2.

“AMOLED displays have become an important differentiating feature for high end electronic products,” noted Jennifer Colegrove, PhD, Director of Display Technologies at DisplaySearch.

“This technology is not only used for mobile phone main displays, but has also penetrated the market for portable media players, digital still cameras and other applications. There will be about 20 new or upgraded AMOLED production lines installed or upgraded worldwide in the next three years,” Colegrove added.

OLED manufacturers are planning to make TV panels larger than 11” in 2009. LG Display is mass-producing small-size AMOLED, and has announced that it will mass-produce 15” AMOLED panels for TV application at the end of 2009. LG Electronics will commercialize 15” OLED TV sets for the holiday season, while Sony’s 20”+ OLED TV announced in 2008 will not reach the market in 2009.

With technology improvements, DisplaySearch forecasts AMOLED will enter more medium- and large-size applications (Fig. 2).

Fig. 2: AMOLED Display RoadmapSource:DisplaySearch Q3’09 Quarterly OLED Shipment and Forecast Report.

Notebooks are an attractive area starting in mid 2010, with mini-notes (netbooks) expected to be in production by end of 2010. 20-29” OLED TVs will enter market by the end of 2010, with 30” and larger TVs forecast to enter the market in late 2011.

OLED shipments for primary cell-phone displays to rise eightfold by 2015

EL SEGUNDO, USA: Triggered by the introduction this year of a wave of cell phones equipped with main displays using Active-Matrix Organic Light-Emitting Diode (AM-OLED) technology, the global market for such screens is set to explode in the coming years, according to iSuppli Corp.

Shipments of OLED displays for the main screens of cell phones are expected to rise by a factor of eight from 2009 to 2015. Global shipments of OLED main cell phone displays will rise to 178 million units in 2015, up from 22.2 million in 2009.

The figure presents iSuppli’s forecast of global shipments of OLED displays for cell-phone main displays.

iSuppli: Global Shipment Forecast of OLED Displays for Use as Main Displays in Mobile Handsets (Thousands of Units)Source: iSuppli, Sept. 2009

“AM-OLEDs deliver superior-quality images compared to conventional LCDs, especially in terms of contrast and response times,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli.

“They also consume less power, extending battery life. With smart phones increasingly being used by consumers as their primary Internet-access devices, the ubiquity and extended operation times yielded by AM-OLEDs make them an attractive choice for such cell phones.”

Despite this growth, OLEDs will still only account for a small percentage of total main mobile-handset displays in the coming years, rising to 6 percent of total unit shipments in 2013, up from 2 percent in 2009. The only factors limiting greater penetration is the fact that the AM- OLED market has only a couple of suppliers and a limited number of factories.

Nokia’s new N85 represents the new breed of handsets with relatively large OLED primary displays arriving in the market. The N85 sports a 2.6-inch diagonal AM-OLED with a pixel format of 240 by 320. An iSuppli teardown of the N85 estimates the cost of the AM-OLED at $7.05, compared to $6.50 for an LCD of equivalent size and resolution.

Other new phones equipped with AM-OLED main displays include Samsung’s Impression and i8000 Omnia II.

While some cell phones with OLEDs have been introduced in the past, Jakhanwal said these mainly have taken the form of displays employing Passive-Matrix (PM-OLED) technology and working as secondary screens, due to the inherent size and resolution limitations of PM-OLED displays.

Pixel formats of QVGA, wQVGA and higher can be achieved in AM-OLEDs, making them suitable for larger main displays in mobile phones, Jakhanwal added, and recent price reductions as well as yield improvements have made AM-OLEDs economical in this application.

Because of this, main cell phone displays will surpass secondary screens as the highest-volume application for OLEDs starting in 2010, and will maintain their lead through 2015.

Compared to the overall market dominated by LCD technology, OLEDs for main cell-phone displays represent an attractive growth opportunity. Global unit shipments of OLEDs for the main displays of cell phones will rise at a 41.4 percent Compound Annual Growth Rate (CAGR) from 2009 to 2015, compared to 8 percent for 2009 to 2013 for all types of displays for handsets.

In addition to their use in smartphones, AM-OLEDs can find strong acceptance as 2.2-inch to 2.6-inch QVGA main displays for conventional cell phones, especially if volumes and prices comparable to LCDs can be obtained.

And beyond the other allures offered by OLED, the technology is more environmentally sustainable compared to that of conventional LCDs.

“OLEDs offer a low-power-consumption solution to flat-panel displays, especially when compared to LCDs, without compromising picture quality,” Jakhanwal noted. “OLEDs also have fewer sub-components and contain no mercury or other heavy metals that require special handling, making them easier to recycle.”

Global OLED revenues to reach $7.1 billion by 2016

AUSTIN, USA: In its latest Quarterly OLED Shipment and Forecast Report, DisplaySearch forecasts the total OLED display market will grow to $7.1 billion by 2016, from $0.6 billion in 2008, with a CAGR of 36 percent.

DisplaySearch also reported that in Q1’09 worldwide active matrix (AM) OLED revenue surpassed passive matrix (PM) OLED for the first time. AMOLED revenue is increasing strongly due to strong mobile phone main display shipments, as Nokia, Samsung Electronics, and Sony Ericsson heavily promoted AMOLED mobile phones in first half of 2009. More than 10 mobile phone models with AMOLED main displays have been released in 2009.

PMOLED has been the revenue leader in the OLED display market, driven by high unit shipments. However, in Q1'09, PMOLED shipments were down significantly due to weakness in MP3 and mobile phone sub-display applications.

“AMOLED displays have become an important differentiating feature for high end electronic products,” noted Jennifer Colegrove, PhD, Director of Display Technologies at DisplaySearch.

“As we forecasted, AMOLED revenue surpassed PMOLED revenue in Q1’09, and AMOLED is likely to pass PMOLEDs in terms of unit shipments in 2010. There will be about 20 new or upgraded AMOLED production lines installed or upgraded worldwide in the next three years,” Colegrove added.

Fig. 1: OLED Display Revenue ForecastSource: DisplaySearch Q2’09 Quarterly OLED Shipment and Forecast Report

The company also reported that worldwide OLED display revenue in Q1’09 was $143 million, down 8 percent Q/Q. AMOLED revenues were up 17 percent Q/Q.

Samsung Mobile Display (SMD), created from Samsung SDI’s OLED business and Samsung Electronics’ mobile display business, started operation in January 2009. SMD had a strong Q1’09, and as a result, it kept the #1 position in shipments with 37 percent market share, followed by RiTdisplay at #2.

OLED manufacturers are planning to make TV panels larger than 11” in 2009; LG Display is mass-producing small-size AMOLED currently, and has announced it will mass-produce 15” AMOLED panel for TV application at the end of 2009. LG Electronics announced that it will commercialize 15” OLED TV for the holiday season (Table 1).

Table 1: AMOLED TVs Planned for the 2009-2010 Holiday SeasonSource: DisplaySearch