DisplaySearch: LCDs Hot, OLEDs a Mixed Bag

Market analysis firm DisplaySearch, a unit of the NPD Group, has released research for the sales and shipments of LCD and those oh-to-hip OLED (Organic Light Emitting Diodes) displays during the second quarter of 2006. And while LCD’s numbers continue to grow, OLEDs appear to be struggling a bit despite increasing shipments.

DisplaySearch found the LCD monitor sales were up three percent worldwide to a total of 29.8 million units during the second quarter of 2006, in part due to growing demand for widescreen displays in China and Latin America. Latin America saw a jump of 37 percent quarter-to-quarter in terms of shipment growth; China saw a 26 percent quarter-to-quarter increase. Demand for desktop LCD displays continues to focus on 17-inch SXGA units, the share for 17-incher is actually down three percent from the first quarter of 2006, losing ground to (you guessed it!) even bigger 19-inch SXGA and widescreen displays. In terms of market share during the quarter, the pack was easily led by Dell with a worldwide market share of 20.1 percent, representing a nine percent growth during the quarter. Following Dell are Samsung, HP, Acer, ViewSonic, and Lenovo—but a whopping 41.8 percent of the market was taken up by manufacturers who were not one of the top five, which may reflect both the variety of LCD makers and genuine competition in the market.

On the OLED front, things are quite so rosy right now: DisplaySearch reports that while unit shipments increased 15 percent during the second quarter of 2006, overall revenues for OLEDs in the same period were down 14 percent. OLED displays compete with small-sized LCD units in portable devices like cameras, phones, and portable media players, and are also used in displays used in autos and other vehicles as well as some industrial and scientific equipment. DisplaySearch found that growth of OLED shipments for use in MP3 players and subdisplays grow by 36 percent and 48 percent respectively, and accounted for roughly 90 percent of the OLED applications in the third quarter of 2005; however, competition between 23 small molecule and 2 P-OLED manufacturers has been driving prices down, leading to decreased revenue and shutdowns: Ness Display of Singapore has closed up shop, and Taiwan’s Teco has stopped production and is moving is fabrication faciliy to China, and Taiwan’s Opto Tech has stopped production entirely pending an influx from a buyer or investor. Among manufacturers, LGE commanded a 24.6 percent market share in the second quarter of 2006, with Samsung and Pioneer garnering 20 amd 15.2 of the market; Univision and RITdisplay tied at 12.3 percent market share.

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