As a mature technology, liquid crystal display (LCD) currently has a cost advantage over other display technologies, and ABI stated that it will remain the primary display technology for the foreseeable future. However, although LCD displays have improved a lot over the years, the technology performance falls short in areas like power consumption and readability in bright light conditions.

“Of the challengers, organic light-emitting diodes (OLEDs) are among leading contenders because of the maturity of their development and their use in other devices, such as televisions, which will strengthen their supply chain,” said Kevin Burden, research director of ABI Research.

mirasol display prototype

Another contender is Qualcomm’s micro-electro-mechanical systems (MEMS)-based “mirasol” display, which ABI stated is finding its first role in secondary screens found on clamshell handsets. Qualcomm plans to open a dedicated mirasol display factory in Taiwan in 2009, which will be another big step in ramping up its supply chain, the research company stated.

Finally, the “electronic paper” E-Ink technology that is found in Amazon’s Kindle device is also being targeted at the handset market. ABI stated that E-Ink is physically robust and has very low power consumption, but its inability to handle color and its low refresh rate may be a limiting factor to immediate appeal. However, there’s an opportunity for the technology to be used as a secondary display in phones.

According to ABI, the biggest limited factor for all of the display contenders is cost. They all cost more than LCD displays. Because of the “enormous volumes” in the mobile phone market, even a few cents can make a difference between adoption and rejection. Prices on the other display technologies should drop over time, ABI noted.

“It’s a long road ahead for these new display companies, but even a niche in the handset market could prove very profitable indeed,” Burden said.

Source: http://www.echannelline.com/usa/story.cfm?item=24176 by Chris Talbot

Samsung LED LCD TV

In recent years, Korean, Taiwanese, and Japanese makers of liquid-crystal display panels have fought hard to establish dominance in the key tech market. And for most of 2007 and 2008 there was plenty of business to go around. Today, though, the economic crisis is slashing demand for the panels, used in flat-panel TVs, computer monitors, and cell-phone screens. While that’s likely to hurt everyone in the battle, the Koreans expect the downturn to play out to their advantage. “This challenging period will give us a good opportunity to widen our lead,” says Lee Bang Soo, a vice-president at LG Display, the world’s second-largest LCD panel maker after its compatriot Samsung Electronics.The Koreans are already gaining. Manufacturing costs today exceed what producers can charge for the panels, so Taiwan’s four biggest makers have slashed output by half or more. AU Optronics (AUO), the leader in Taiwan and the global No. 3, saw its market share for panels bigger than 10 inches plunge to 11% in November, from 19.2% in January, while share for Taiwan’s Chi Mei Optoelectronics fell to 9%, from 12%, says market researcher DisplaySearch. Samsung, meanwhile, increased its share in the segment by 8.5 percentage points, to 32.5%, during the period, and LG jumped 3.1 points, to 23.5%.

One big advantage the Koreans enjoy is their strong ties with TV vendors. Samsung runs an LCD-panel joint venture with Japan’s Sony (SNE), giving it a direct pipeline to the world’s two hottest TV brands. Samsung and Sony together had 42% of the market for LCD TVs in the third quarter of 2008, DisplaySearch estimates. LG Display is the primary supplier for two of the three other top TV brands: its parent, LG Electronics, and Philips, which has a 13.7% stake in LG Display. (Japan’s Sharp, the remaining major player in LCD TVs, makes its own panels.) “Vertical integration with major set makers is vital for us,” says Samsung Vice-President Kwon Gye Hyun.

As a result, Taiwanese LCD-panel makers have been relegated to selling to smaller brands and playing a backup role for the bigger brands. That means their orders get canceled first when markets shrink. LCD TVs account for well over half of all LCD consumption and represent a rare area of potential growth in the consumer electronics industry in the near future. Researcher iSuppli forecasts the global LCD TV market will rise to $101 billion in 2012, from $61 billion in 2007.

While the Taiwanese acknowledge the Koreans are extending their lead, they say the battle is far from over. They’re counting on their relatively strong position in emerging markets and say they will continue to invest in initiatives that will make their operations more efficient. “AU is taking this opportunity to sharpen its core competence,” Andy Yang, a finance vice-president at AU Optronics, wrote in an e-mail. “In addition, our R&D [department] is actively continuing the development of new technologies.”

Still, the Taiwanese have to contend with a weak Korean currency that continues to help Samsung and LG. While Taiwan’s currency was nearly flat against the U.S. dollar in 2008, the Korean won plummeted almost 26% against the greenback, making Korean exports far cheaper. “If the Korean won stays weak, the Taiwanese won’t have any chance to win back their share,” reckons Henry Wang, general manager at Taipei-based researcher WitsView, which specializes in display devices.

A potentially bigger problem is a delay in investing in next-generation production technology. Samsung and LG are the only ones planning to launch new plants this year capable of churning out panels bigger than 52 inches, used for big-screen TVs. Taiwan Premier Liu Chao-shiuan said on Dec. 25 his government would help the island’s LCD industry weather the global recession. Yet analysts say any bailouts won’t allow troubled Taiwanese companies to build new plants costing at least $3 billion each. “They can’t afford to plan for anything else but their survival now,” says Lee Hak Moo, display analyst at brokerage Mirae Asset Securities in Seoul. “The Koreans are poised to increase their lead.”

Source: BusinessWeek

Funai Brand Logo

May be you don’t know the brand of Funai, but you should know Wal-Mart. Funai is the main supplier of LCD TV and DVD players to Wal-Mart stores, under the Wal-Mart’s house brand – Durabrand. News source from Digitimes.com, start from year 2009, Funai will source all their LCD TV panels from Korea-based LG Display, Taiwan-based Chi Mei Optoelectronics (CMO) and Chunghwa Picture Tubes (CPT).

Durabrand Logo

Earlier this year, Funai signed a five year deal with Philips to license the Philips and Magnavox brands in the North America TV market. Indirectly, the future Philips and Magnavox brands LCD TV will manufacture by Funai, with panels from LG Display, Chi Mei Optoelectronics and Chunghwa Picture Tubes.

Funai has now settled its TV panel procurement plan for 2009, with CMO, CPT, and LG Display sharing the LCD TV panel orders. LG Display will mainly supply panels for 37-inch and larger segment, while CMO will supply panels for the 32-inch segment and possibility the 37-inch or larger segments, according to the sources. CPT will provide medium-size panels such as 19-inch or 22-inch panels. The market sources estimate that Funai will purchase about two million LCD TV panels from CMO, over 1.6 million units from CPT and about one million units from LG Display. Funai decided to purchase LCD TV panels from LG Display in 2009 due to LG Display’s historical relationship with Philips.

Source: Digitimes.com