Low Manufacturing Yields to Keep Cost of AMOLED TV Panels High for Several Years, According to NPD DisplaySearch

Sort Date: 06122013

Santa Clara, California, June 12, 2013—The first 55" AMOLED TV is on the market, with others expected to follow; however, the cost of AMOLED panels will remain very high compared to TFT LCD display panels, limiting adoption by consumers. Current manufacturing costs for AMOLED (Active-Matrix Organic Light-Emitting Diode) display panels are estimated to be almost seven times higher than costs for the LCD panels that now dominate the TV market, according to the new NPD DisplaySearch Quarterly AMOLED Panel Cost Report.

“The estimated total manufacturing cost of a full-HD 55" panel is $2,454 in Q1’13, due to low manufacturing yields,” according to Tadashi Uno, Director of Materials and Components Market Research for NPD DisplaySearch. “As yields improve, the cost is expected to fall significantly over the next two years, but will remain much higher than equivalent LCD panels.”

AMOLED TV panel manufacturing yields (the fraction of panels produced that are useable) are lower than TFT LCDs, because AMOLED manufacturing processes are not mature. Materials, depreciation, personnel expenses, and other cost factors are highly related to yield rate; therefore, improving AMOLED yields quickly is the key factor for making AMOLED TVs competitive with LCD TVs. According to the NPD DisplaySearch cost model, the manufacturing cost for AMOLED TV panels is expected to fall by 36% from Q1’13 to Q1’14, but the panels will still cost five times as much as LCD TV panels. In 32" TV panels, the cost model also that AMOLED is only twice the cost of LCD. However 32" is a much more cost-sensitive segment of the market, so AMOLED is not competitive even with this much smaller premium.

Figure: Cost Analysis of 6-Up 55" FHD AMOLED TV versus TFT LCD TV

Source: NPD DisplaySearch Quarterly AMOLED Panel Cost Report

The Quarterly AMOLED Panel Cost Report offers the first AMOLED cost model, with quarterly insights into the latest AMOLED industry and technology trends. For more information please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan or more information.

About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, 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. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. 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.

About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit http://www.npd.com/ and npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

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