News
EL SEGUNDO, CA – Consumers are snapping up digital photo frames and tiny televisions, spurring a period of supply tightness and price increases for small/medium displays that is expected to linger through the first quarter, says iSuppli Corp.
Overall demand for small/medium displays – for example, screens with diagonal dimensions of less than 10" – exceeded supply by a scant 0.8% in the fourth quarter, down from 6.2% sequentially. Supply will exceed demand by only 1% in the first quarter, according to the research firm.
“With demand just barely higher than supply, availability of some screens has been constrained, which in the fourth quarter led to something that hasn’t been seen in the small/medium display market for a year: price increases for some products,” said Vinita Jakhanwal, principal analyst, mobile displays, for iSuppli. “With the large volumes and intense competition in small/medium displays, prices typically decline on a quarterly basis. The price increases indicate that demand growth is extremely vigorous.”
The global average selling price of small/medium displays used for digital photo frames rose to $30 in the fourth quarter, up 20% sequentially, Jakhanwal noted. The ASP for small/medium displays for tiny LCD televisions rose to $8.40 in the fourth quarter, up 2.4% sequentially.
Although prices for digital photo frame displays will decline by 3.3% in the first quarter, prices will increase slightly in other areas, including portable media players, mobile handsets, automotive applications, camcorders, cameras and industrial/financial applications, iSuppli predicts.
This will cause the overall ASP of small/medium displays to rise to $6.80 in the first quarter, up 22% from the fourth quarter.
In general, prices for smaller-sized small/medium displays are remaining steady or decreasing slightly, while larger displays are experiencing price increases.
Pricing strength will contribute to a strong first quarter for small/medium displays, with global revenue reaching $6.4 billion, up 17.3% year-over-year. Revenue will decline by 6.5% sequentially, but a seasonal slowdown is typical, says iSuppli.
For 2008, small/medium display revenue is expected to rise to $27.6 billion, up 14.7% compared to 2007. This represents a significant acceleration compared to 8.8% growth in 2006.
On a percentage basis, digital photo frames will be the world's fastest-growing application for small/medium display in 2008, with global revenue rising to $699 million, up 91.4% from 2007. However, mobile handsets will continue to dominate the market, accounting for $15.9 billion in revenue in 2008, up 17.3% from 2007.
Although strong demand for small/medium panels is expected this year, there remains some risk of imbalances in the supply/demand equation, according to iSuppli.
Chinese white-box mobile handset demand is weakening. Furthermore, major panel overbooking could result in inflated demand expectations, leading to a correction in demand later this year.
The background to this is the precarious U.S. economy and stock market. The sub-prime crisis has weakened the U.S. economy and could dampen information technology and consumer spending.
Small/medium LCD panel makers are concerned and are contemplating reducing or slowing their capacity expansion efforts to control output during the second half of the year.
LONDON – Prices for metals commonly used in electronics manufacturing have jumped in the past week, with some key commodities rising more than 11%.
SAN JOSE – January semiconductor sales were flat year-over-year and slipped a notch sequentially, the Semiconductor Industry Association reported today.
BANNOCKBURN, IL – In a nod to the IPC’s expansion into China, Bob Neves, chairman and CTO of Microtek Laboratories, has been named the latest inductee into IPC’s Hall of Fame.
Neves has represented the U.S. and IPC at IEC meetings for a decade, and has helped spur the IPC’s move into China.
Neves, who has been active with IPC since 1986, is a former chairman of key committees for printed boards and bare board specifications. He also chaired the California Circuits Association Council of the IPC.
Based on lifetime achievement, the award is the association’s highest level of recognition, honoring members who make extraordinary contributions to IPC and the electronic interconnect industry.
Neves involved Microtek in several IPC test programs and has played an active role in IPC long-range planning and roadmapping sessions.
Neves has represented the U.S. and IPC at IEC meetings for a decade, and has helped spur the IPC’s move into China.
Neves, who has been active with IPC since 1986, is a former chairman of key committees for printed boards and bare board specifications. He also chaired the California Circuits Association Council of the IPC.
Based on lifetime achievement, the award is the association’s highest level of recognition, honoring members who make extraordinary contributions to IPC and the electronic interconnect industry.
Neves involved Microtek in several IPC test programs and has played an active role in IPC long-range planning and roadmapping sessions.
MELVILLE, NY – Arrow Electronics Inc. has signed on to purchase the components distributor Achieva from Asia-based parent company Achieva Ltd.
SEOUL РAndr̩ Myny has been appointed global marketing director of Koh Young Technology Inc., effective March 1.
Myny brings more than a decade of marketing experience in the global circuit board assembly industry. He will work out of the company’s European operation in Raamsdonksveer, The Netherlands.
Prior to joining Koh Young, André Myny directed global marketing for Vitronics Soltec from 1994 to 2007.
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