The supply pattern of small and medium-sized display screens changed quietly

Shuiqing Muhua Research Center pointed out that small and medium-sized display screens refer to displays below 11 inches. With the mass production of the TFT-LCD production line of high generation, the competitiveness of the manufacturers of the 3rd-generation and the 5.5th-generation lines that mainly attacked the large size was not as good as that of the 6th to 10th generation TFT-LCD production lines. These manufacturers have successively transformed themselves into small and medium-sized display manufacturers. As a result, the phenomenon of oversupply of the market began to appear, especially in the medium-sized (5-11 inches) area, where prices have dropped significantly.

The output value of the small and medium-sized display industry declined in 2006, but the market has also gradually changed.

First of all, with the rapid growth of smart phones, the size of mobile phone displays is getting larger and larger. The screen size of mainstream smart phones reaches 3.5 inches, and the screen of high-end smart phones reaches 4.3 inches, which is 2 times that of ordinary mobile phones. The resolution (Resoultion) is also getting higher and higher, the mainstream resolution is 800*480 or 800*854, and the high-end resolution is 960*640, which is 4 times that of ordinary mobile phones.

The average price of mobile display (ASP) changed from continuous decline to continuous increase. The average price of mobile display in 2010 was 8.06 US dollars, an increase of 11.8% over 2009. It is estimated that by 2013, the average price of mobile phone displays will rise.

Second, the mid-size display market began to break out. In 2009, the emergence of a large number of netbooks made the small and medium size display industry still achieve growth in the context of the economic crisis. In 2010, a large number of tablet PC shipments drove the growth of the mid-size display market.

The small and medium-sized display industry also experienced relatively large changes within a year. CPT and HannStar have been transformed into small and medium-sized display manufacturers. In 2010, CPT shipped a total of 352 million units, an increase of 135% over 2009; HannStar shipped 248 million units in 2010, an increase of 505% over 2009. Although the volume of shipments increased significantly, the average unit price was not high and gross profit was low. In addition to the high depreciation costs of the TFT-LCD production line, these two manufacturers are still in a quagmire of losses.

Samsung Mobile Display (SMD) has made major breakthroughs in 2010 after years of cultivating OLEDs. Relying on a depreciated 4.5-generation LTPS TT-LCD production line, SMD's OLED shipments have soared. Samsung, Nokia, HTC and Lenovo all make use of OLEDs as mobile phone displays. In 2010, the output value of the OLED industry increased by 92% compared with 2009, of which SMD contributed over 95%. In 2011, SMD will also rely on OLED to press Sharp and become the world’s largest manufacturer of small and medium-sized displays.

In the second half of 2010, due to insufficient production capacity of LG Display, Apple's iPhone display increased its suppliers, Sharp and TMD were selected. Sharp originally provided Apple with displays other than iPhones and iPads. Suspended by Apple's long-term orders and huge cash support, Sharp reopened three small and medium-sized display lines, Tenli and Mie, which were closed in late 2008 due to the economic crisis.

At the end of 2010, Hon Hai intends to acquire 50% of Hitachi's shares and bid 100 billion yen, but it is useless. In early 2011, SONY MOBILE DISPLAY sold its subsidiary STMD to Kyocera. At the same time as the sale of STMD, Sony bought the fourth-generation line of Epson Display Devices (EID), and at the same time spent 780 million yuan to acquire Epson's late-stage module factory in Suzhou.

In 2004 and 2005, Epson, the world’s largest small and medium-sized display manufacturer, has seen continuous decline in performance in recent years and is likely to eventually withdraw from this area.

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