OLED displays, make images on cellphones jump of the devices and the market for them is growing rapidly.
Triggered by the introduction this year of a wave of cell phones equipped with main displays using Active-Matrix Organic Light-Emitting Diode (AM-OLED) technology, the global market for such screens is set to explode in the coming years, according to iSuppli Corp.
Shipments of OLED displays for the main screens of cell phones are expected to rise by a factor of eight from 2009 to 2015. Global shipments of OLED main cell phone displays will rise to 178 million units in 2015, up from 22.2 million in 2009.
Nokia’s new N85 represents the new breed of handsets with relatively large OLED primary displays arriving in the market. The N85 sports a 2.6-inch diagonal AM-OLED with a pixel format of 240 by 320. An iSuppli teardown of the N85 estimates the cost of the AM-OLED at $7.05, compared to $6.50 for an LCD of equivalent size and resolution.
Other new phones equipped with AM-OLED main displays include Samsung’s Impression and i8000 Omnia II.
“AM-OLEDs deliver superior-quality images compared to conventional LCDs, especially in terms of contrast and response times,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli. “They also consume less power, extending battery life. With smart phones increasingly being used by consumers as their primary Internet-access devices, the ubiquity and extended operation times yielded by AM-OLEDs make them an attractive choice for such cell phones.”
Despite this growth, OLEDs will still only account for a small percentage of total main mobile-handset displays in the coming years, rising to 6 percent of total unit shipments in 2013, up from 2 percent in 2009. The only factors limiting greater penetration is the fact that the AM- OLED market has only a couple of suppliers and a limited number of factories.
While some cell phones with OLEDs have been introduced in the past, Jakhanwal said these mainly have taken the form of displays employing Passive-Matrix (PM-OLED) technology and working as secondary screens, due to the inherent size and resolution limitations of PM-OLED displays. Pixel formats of QVGA, wQVGA and higher can be achieved in AM-OLEDs, making them suitable for larger main displays in mobile phones, Jakhanwal added, and recent price reductions as well as yield improvements have made AM-OLEDs economical in this application.
Because of this, main cell phone displays will surpass secondary screens as the highest-volume application for OLEDs starting in 2010, and will maintain their lead through 2015.
Compared to the overall market dominated by LCD technology, OLEDs for main cell-phone displays represent an attractive growth opportunity. Global unit shipments of OLEDs for the main displays of cell phones will rise at a 41.4 percent Compound Annual Growth Rate (CAGR) from 2009 to 2015, compared to 8 percent for 2009 to 2013 for all types of displays for handsets.
In addition to their use in smart phones, AM-OLEDs can find strong acceptance as 2.2-inch to 2.6-inch QVGA main displays for conventional cell phones, especially if volumes and prices comparable to LCDs can be obtained.
And beyond the other allures offered by OLED, the technology is more environmentally sustainable compared to that of conventional LCDs.
“OLEDs offer a low-power-consumption solution to flat-panel displays, especially when compared to LCDs, without compromising picture quality,” Jakhanwal noted. “OLEDs also have fewer sub-components and contain no mercury or other heavy metals that require special handling, making them easier to recycle.”
To learn more about this topic, see iSuppli’s new report, entitled: Next Phase of OLED Volume Production Entails Tough Challenges.