EL SEGUNDO, CA – Global shipments of displays for mobile handsets are expected to decline more than 6% in 2009 and remain flat in 2010, as worsening economic conditions continue to impact the wireless industry, says iSuppli Corp.
iSuppli forecasts the mobile handset display market will decline to 1.5 billion units in 2009, down 6.2% year-over-year. Shipments will rise by a marginal 0.3% in 2010. The market won’t recover to exceed the 2008 level until 2011, when shipments will reach 1.65 billion units.
“The handset display market already was struggling in 2008 due to declining average selling prices and dwindling margins,” said Vinita Jakhanwal, principal analyst for mobile displays at iSuppli. “However, the downturn now is beginning to impact unit shipments, leading to revenue declines for the industry this year and next.
“The decreasing replacement rate for handsets due to deteriorating economic conditions will be the main cause for the market downturn. New handset demand from the emerging countries will not be sufficient to offset this decline.”
Beyond the slowdown, a major buildup in inventories of finished handsets will make the decline more severe in the beginning, says the firm. Indications of an inventory correction already had a major impact on the industry in the fourth quarter.
In response to this, handset display shipments from the top suppliers declined more than 40% sequentially in the fourth quarter.
During the current quarter, demand is expected to shore up slightly because of demand associated with the Chinese New Year, driven by domestic Chinese handset makers and the top-tier cellphone brands, according to iSuppli.
The mobile handset market has been characterized by declining display prices over the last few years. This mainly has been a result of the expansion of TFT-LCD capacity, as new investment has enabled newer generation fabs to meet the expanding demand for monitors, notebooks and LCD TVs.
Despite the economic slowdown, mobile-display panel pricing for all screen sizes and technologies is expected to maintain its historical annual decline rate of 15% to 20% this year. iSuppli believes the ASP decline in 2009 won’t be as severe as it was in 2008 for some specific panel types. Most suppliers have implemented capacity cuts and reduced their fab utilization rates in response to the slowing demand. This will help mitigate some of the more precipitous declines in prices, says the firm.
Despite decreases in pricing and declines in shipments, it is unlikely that top-tier customers will have difficulties procuring panels in 2009. With the current cuts in capacity utilization, the level of oversupply in the small/medium TFT-LCD industry may shrink, but it is doubtful any shortages will occur. When suppliers see orders increasing, they can ramp up production again easily.
It won’t be an easy 2009 for small/medium TFT-LCD mobile handset display suppliers, and 2010 will be only marginally better. However, if the suppliers can withstand the price cuts, volume reductions and capacity utilization drops, they should be positioned for a turnaround in 2011, iSuppli believes.
ARLINGTON, VA -- The Consumer Electronics Association this week applauded President Barack Obama for his focus on reducing the federal
deficit as a critical component to addressing the fiscal problems
facing the country. CEA believes the ballooning deficit is a principal
impediment to long-term economic growth, the trade group said.
CEA is urging the federal government to
reduce the deficit by committing to the follow actions:
End corporate bailouts, including the Troubled
Asset Relief Program, that artificially prop up industries, and end
“Buy American” and other bailout provisions that reward backward
protectionist policies that will hurt America’s ability to compete in
the global economy.
Oppose the Employee Free Choice Act, or “card
check,” and other anti-business measures that hurt American employers
and infringe on the rights of workers.
Pass pending free trade agreements,
particularly those with Colombia, Panama and South Korea, to boost U.S.
exports and let American companies fairly compete with their
international trading partners.
Support the free and open market and promote
technology innovation by U.S. companies. When aided by trade, the
technology industry will help mend the global economy and drive the
creation of new jobs.
ARLINGTON, VA --
Consumer confidence in the overall economy was virtually unchanged in
February, according to figures released by the Consumer Electronics
Association and CNET. Despite positive growth in
certain categories, such as digital displays, the CEA-CNET Indexes also show
that consumer expectations about technology spending continue to fall.
WALTHAM, MA -- Worldwide
semiconductor revenues will fall nearly 20% this year to $199.2
billion, a drop that will take until at least 2012 to recover from, according to In-Stat. The rebound will be strong and will start next year, however, the research firm says.
BRUSSELS -- Intel today said it has filed a statement of objections to the European Commission' antitrust charges.
The EC complaint asserts Intel illegally takes advantage of its dominant position in microprocessors by establishing certain non-competitive marketing and pricing practices.
An Intel spokesman said the company responded on Feb. 5 to the EC's charges, Reuters reported. No further details were made available.
SMYRNA, GA, --PCB Atlanta is a one-day trade show and free technical program taking place October 22, in the north Atlanta suburb of Alpharetta, GA.
The event, one of a series sponsored by UP Media Group, is ideal for PCB designers, engineers, fabricators and purchasing managers. PCB Atlanta 2009 will be held at the Atlanta Marriott Alpharetta, just minutes north of the city.
The to-be-announced technical program will include talks on HDI, routing and placement, surface finishes, board fabrication and other related topics.
The accompanying tabletop exhibition is expected to draw more than 40 leading suppliers from the printed circuit design and fabrication industry.
