iPhone killer drive market

Displays commonly used in smart phones are facing increased sales following the upcoming release of so-called "iPhone killer" devices. According to iSuppli, worldwide shipments of displays ranging in size from 2.5-inches to 4.9-inches diagonally that feature QVGA quality pixel formating are projected to rise to 150 million units, and increase of 22 percent from 123 million units last year. These projections also indicate overall shipments of mobile displays will decrease by 11 percent this year.

iSuppli believes the coming smart phones will generate demand from the Chinese mobile phone makers and will help propel a recovery in the mobile phone display market. Common seasonal factors combined with the current recession and large amounts of inventory caused shipments to decline sequentially by 17 percent in the forth quarter of 2008 and 8.5 percent in the first quarter of this year.

In this year's second quarter, a shortage of driver ICs (integrated controllers) and LCD glass caused shipments to slow. This issue was resolved by June, allowing mobile phone display shipments to rise by 5 percent in the second quarter.

The current third quarter is usually the strongest period of the year due to shipments made in preparation for the impending holiday demand for electronics. If mobile phone sales continue to decrease oversupply in the display market could build up.

By Electronista Staff

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iPhone, industry, iSuppli, mobile phones