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AM-OLED revenues to Pass US$10 billion in 2013

As long as the AM-OLED business model remains limited to a single source (Samsung Display) and single customer (Samsung Mobile), its future growth is uncertain

11 Apr 2013 | Editor

According to the latest Quarterly Worldwide FPD Shipment and Forecast Report from NPD DisplaySearch, AM-OLED revenues are expected to pass US$11.3 billion in 2013, up from $6.9B in 2012. This is an important milestone in the growth of AM-OLED production.

However, as long as the AM-OLED business model remains limited to a single source (Samsung Display) and single customer (Samsung Mobile), its future growth is questionable. Without large scale investments and participation by several panel makers, it’s hard to conclude that OLED can be a mainstream display technology that could replace TFT LCD.

The big revenue growth in AM-OLED is primarily driven by the growth in mobile phones, especially the latest Samsung Galaxy S 4, which uses a 5-inch 1,920×1,080 (440 ppi) AM-OLED panel, with an average selling price of over US$65, including integrated (on-cell) touch. DisplaySearch forecast that over 52 million 5-inch AM-OLED smart phone panels will be shipped in 2013, accounting for over US$3.2 billion in revenues. The revenue growth of AM-OLED in 2013 is linked to the higher prices for AM-OLED panels compared to other mobile phone panels like a-Si TFT LCD or LTPS.

As Samsung Mobile continues to focus on AM-OLED as not only a display component but an important element of its brand, shipment growth of the Galaxy series will lead to growth in AM-OLED revenue. Samsung Mobile is widely adapting AM-OLED for its products, including Galaxy Phone, Galaxy Note and Galaxy Player.

In 2013, Samsung intends to introduce three new products – Galaxy S4, Galaxy Note 3 and Galaxy New Player. The Galaxy S4 and Galaxy New Player will definitely use AM-OLED panels. Of course, high resolution is a challenge for AM-OLED, and Samsung has considered switching to LTPS TFT LCD for the S4 and Note 3. However Samsung has been able to increase the effective resolution of AM-OLED, and so it is expected that the Note 3 will continue to adopt AM-OLED.

In addition, DisplaySearch also forecast that there will be a limited amount of the 55-inch FHD AM-OLED TV panels shipped in 2013, which will also contribute to the AM-OLED revenues. With AM-OLED revenues passing US$ 10 billion, AM-OLED has become a big industry, but – unlike TFT LCD – this field is completely dominated by Samsung. For other panel makers, the entry barrier for AM-OLED is not only technology, but also revenues and thus ability to invest.

       

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