Small AMOLED displays are generally used among various Android smartphones. The scarcity of this technology however seems to lower its supremacy over the current AMLCD technology present in the smartphone market according to iSuppli’s latest report. Small-sized AMOLED display consignments are expected to augment to 184.5 million units by 2014 over the 20.4 million unit figure seen in 2009 while AMLCD dispatchments for the same are anticipated to surge to 1.75 billion by 2014 from 1.3 billion in 2009.
Since AMOLEDs avoid leave out backlights, they are suggested to have power-saving advantage when pitted against AMLCDs. This could in particular prove beneficial for battery-powered smart phones. In addition to this, the elimination of backlights also gives AMOLEDs a comparatively thin structure. AMLCDs also seem to have their upsides with superior performance, improved fast motion display and a richer color gamut being the highlights.
Vinita Jakhanwal, principal analyst for small and medium displays at iSuppli shares, “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. However, rising demand-combined with a limited supply base-has led to the constrained availability of AMOLEDs.”
Samsung mobile displays (SMD) and LG displays are the only sources available for AMOLED panels. Presently SMD is investing $2.2 billion in AMOLED facility by 2012 to speed up the production whereas LG has lowered shipments as they plan to expand production. Lack of AMOLED suppliers sure appears to be a huge concern for handset manufactures with delay of components or a complete halt seeming to be the major drawbacks.
AMOLED is new compared to AMLCD, enabling the latter to enjoy fixed cost advantages as compared to AMOLED. Newer technologies like AMOLED may take time to get firm and initially face losses along with slower production. Coping with the existing pressure on display prices and competing with performance is a tough task for new technologies like AMOLED and returns on large investments often get delayed.
In order to increase the supply of displays Samsung is investing in AMOLED and anticipates to have an added Gen 5.5 fab up by the end of 2011. However LG is going to begin a new Gen 4.5 fab that will produce both LTPS and AMOLED panels. Handset manufactures are making great effort to avail displays from AMOLED suppliers.