Seoul, South Korea – Manufacturers of small- and medium-sized displays are rapidly shifting from the production of rigid organic light-emitting diode (OLED) panels used in smartphones and wearable devices, to flexible active-matrix-organic-light-emitting diode (AMOLED) panels, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. In particular, Samsung Display and LG Display are pursuing enhanced technological differentiation for liquid-crystal display (LCD) panels, in order to expand the supply capacity of flexible AMOLED displays. Flexible AMOLED panel shipments are forecast to amount to more than 11 percent of rigid AMOLED shipments this year.
“When growth in the smartphone market started to slow in 2013, smartphone makers began to adopt lower-priced, higher-quality panels and AMOLED displays lost their competitive edge,” said Jerry Kang, principal analyst, emerging display technologies and OLED panels. “Leading panel manufacturers are now developing flexible AMOLED displays to differentiate their offerings from rigid LCD and AMOLED displays used in smartphones and wearable devices. These panels are especially useful in wearable devices, which must be light, thin and consume less power than non-wearable devices.”
Declining prices for low-temperature polysilicon (LTPS) LCD displays has quickly undermined the price competitiveness of AMOLED panels. “Smartphone makers were unhappy with the price of AMOLED panels, because higher-priced pentile-pixel AMOLED displays had lower sharpness than LTPS LCD displays with same resolution,” Kang said. “As the wide color gamut of AMOLED displays has not been a major differentiation factor in the smartphone panel market, current AMOLED panels will eventually lose their appeal, unless prices decline further.”
To cope with these market conditions, and to differentiate their offerings, AMOLED panel makers are now offering flexible displays. For example in 2013, LG Electronics launched the G Flex and Samsung Electronics launched the Galaxy Round. In 2014, the companies introduced the G Flex 2 and the Galaxy Note Edge, respectively. Samsung's latest flexible display smartphone model, the Galaxy S6 Edge, was unveiled earlier this year.
Flexible OLED-based products are not fully differentiated from the ones using conventional rigid, flat, mobile handset and smartwatch panels. Now with curved, bendable and edge AMOLED display designs, panel form factors are truly differentiated; however, they have not been actively used to offer new functions or to provide an extended-user experience. “Flexible OLED panels are used to add value, and as a way to differentiate products from traditional rigid panels,” Kang said. “Flexible OLED panel makers should now focus on providing a more advanced form factor—and a better user experience—than what is available in current products.”
The 2015 AMOLED Panel Industry & Market Update report from IHS analyzes the competiveness of AMOLED panels, in terms of performance, costs and manufacturing technologies. It also explores development trends and related issues, as well as providing a long-term market forecast for AMOLED panels. For information about purchasing this report, contact the sales department at IHS in the Americas at (844) 301-7334 or ; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or ; or Asia-Pacific (APAC) at +604 291 3600 or .
Connect with IHS at booth number 1117 at 2015 SID Display Week 2015 in San Jose, California, June 2 – 4, 2015, to learn more about the small-medium display market. For more information about this conference, visit www.displayweek.org.