AUSTIN, TX -- Mobile phone display shipments are expected to improve through 2009 due to relatively strong demand for smartphones, video capabilities and the growing China market.

Total mobile phone display shipments are forecast to increase 16.3% and 17.6% in the second and third quarter, respectively, or 36.9% in aggregate, reversing a drop of 11% sequentially and 19% year-over-year, according to DisplaySearch.

“Growth in mobile phone display shipments will be driven by demand from major mobile phone manufacturers such as Nokia, Samsung, LG, Sony Ericsson and Motorola, as well as Chinese brands including Huawei, ZTE as well as Tianyu and white box manufacturers,” said Hiroshi Hayase, DisplaySearch’s director of small/medium display research. “In addition, the availability of low cost mobile phones in these regions will also contribute to the anticipated growth for this segment.”

More than 20% of mobile phone displays were shipped to Chinese brands and white box manufacturers, mainly in China. White boxes are unbranded mobile phones designed to be similar to popular designs by top-tier brands such as Nokia, Samsung and Apple. Produced in China-based manufacturing facilities, these knockoffs are sold at significantly lower price points. The total amount of mobile phone displays shipped for the China market is expected to exceed display shipment amount for Samsung Telecom. As a result, the demand for mobile phone displays will increase.

The number of mobile phone shipments reached 276.1 million in the first quarter. Nokia retained its top position with 31.7% share, followed by Samsung, LG,  Motorola and Sony Ericsson.