iPhone 6 Models Strengthen Growth in HD and FHD Smartphone Displays, According to DisplaySearch

Beginning in Q2’14, display panel makers significantly reduced prices for high-definition (HD, 720 x 1280) and full-high-definition (FHD, 1080 x 1920) in-cell and on-cell modules. According to the latest DisplaySearch Smartphone Quarterly, due in large part to robust consumer demand for Apple iPhone 6 models, adoption of HD and FHD smartphone displays is forecast to grow quickly.

With the rise of developing markets, and rapid increases in low-priced smartphone models, the growth of wide video graphics array (WVGA, 480 x 800) and full wide video graphics array (FWVGA, 480 x 854) is expected to slow in 2015; however, these types of displays will still comprise nearly a third (30%) of the smartphone market. Wide quad high definition (WQHD, 1440 x 2560) displays will account for 9% of the smartphone market in the coming year. “Brands are finding it hard to differentiate their smartphone product lineup solely by increasing display resolution; however, that does not mean the trend toward higher resolutions is going to end,” said Tina Teng, smartphones senior analyst for DisplaySearch.

While WVGA and FWVGA panel shipment growth is declining, they still constitute a significant share of the smartphone market. The share of displays with resolutions lower than qHD (540 x 960) is expected to decline from 47% in 2014 to 34% next year; however, their shipment volume is still significant.

Brands and manufacturers would like to adopt higher resolution displays, but the rapid growth in low-priced smartphones, along with power consumption and cost considerations, mean that WVGA and FWVGA remain the dominant resolutions for smartphones selling for less than $80. In 2015 LTE smartphones are expected in China, while low-end 3G smartphones selling for less than $60 are being launched in other emerging markets. The introduction of these low-priced smartphones will cause increases in shipments of WVGA, FWVGA, and qHD smartphone displays, which are forecast to penetrate 33% of the smartphone market in 2015.

In the past, when Apple launched new iPhone models, other brands would launch high-end products with the highest display specification available. However, because of the market growth of mid-range and low-end devices, when the iPhone 6 models were introduced this year, only a handful of competitive models using WQHD were introduced, including Samsung’s Note 4, Note Edge, Motorola’s Nexus 6 and LG’s G3-LTE Dual.

The share of smartphones with HD screens is forecast to grow from 28% in 2014 to 33% in 2015, while the share of FHD-and-higher smartphone screen resolutions will reach 34% next year. Interviews with mobile operators, brands, device manufacturers and key component providers, which were conducted by DisplaySearch, reveal that 4G smartphones priced between $100 and $150 are highly likely to adopt a HD resolution, and both 5” and 5.5” amorphous silicon (a-Si) panels will have a cost advantage.

DisplaySearch forecasts that growth in FHD and WQHD displays will accelerate in 2H’15. Due to component price declines, and maturing display technologies, brands and device manufacturers are more willing to adopt higher resolution displays. Ultra high definition (UHD, 2160 x 3840) resolution smartphones are expected to enter the global market as early as next year. Display component suppliers, including driver integrated circuit (IC) manufacturers, have started to develop products to support the development of 6” UHD displays. Meanwhile, Qualcomm’s Snapdragon 805 can already support a 4K primary display and 4K video codecs. “While 4K UHD will not immediately become a mainstream display resolution, and there are many production challenges, we expect to see the first 4K UHD smartphones enter the market in 2015,” according to Shawn Lee, research director for DisplaySearch.

The DisplaySearch Smartphone Quarterly report offers analyses of the smartphone market by region, brand, air interface, technology, and mobile operation system on a quarterly and annual basis. It also analyzes the market and technology trends for smartphone components, touch panels, cover glass, and applications processors. For more information about the report, please contact your regional DisplaySearch office.

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About DisplaySearch (www.displaysearch.com)
DisplaySearch, now part of IHS, Inc. (NYSE: IHS), provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. For more information, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.