AMOLED smartphone panel shipments are projected to jump to 217 million this year from just 134 million in 2012. By 2014, the huge increase in demand combined with ballooning screen sizes will cause AMOLED demand to almost double between the first quarter of 2013 to a year from now, according to a new study from DisplaySearch.
The market research and consulting firm projects that by the end of 2013 the supply-to-demand ration could drop to just one percent, noting that this could mean serious delays for new devices and even AMOLED shortages. We saw that happen a few years ago, in fact, when the Verizon HTC DROID Incredible was delayed due to AMOLED panel shortages.
For now, Samsung Display remains the major manufacturer of AMOLEDs, which are mainly used in its own smartphones including the 5-inch Galaxy S4 and likely the upcoming 5.9-inch Galaxy Note III. DisplaySearch notes that the South Korean company is already moving to ramp up AMOLED production.
“Rapid growth of smartphones and tablets, in conjunction with the continued shift towards larger average TV sizes, are driving a recovery of the Flat Panel Display (FPD) industry.” As long as Samsung’s AMOLED production can keep up with demand the drastic increase should be good for the industry, argues DisplaySearch.