What They Say
DSCC has published a release about its first ‘Advanced smartphone’ report. It highlights that the end of the year was very different from previous quarters. Apple’s plans remain the biggest factor in market direction.
- In Q3’20, AMOLED smartphone panel shipments were down Y/Y for the second straight quarter due to weakened demand from the COVID-19 pandemic and delays in Apple’s iPhone 12 launch.
- Q4’20 looks to be a record quarter by a wide margins however due to:
- Apple’s all OLED launch, much of which was delayed into Q4.
- A stronger launch for Apple than usual due to 5G.
- Samsung pulling in its S21 launch into early Q1 with panel shipment starting one month earlier.
- 5G momentum, mostly outside of the US.
- Pent-up demand after a weak Q2 and Q3 with some economies recovering.
- Panel revenues were down 11% Y/Y but are expected to rise 77% Q/Q and 63% Y/Y in Q4’20 to $10.5B, a record high by 33%.
What We Think
There are some interesting snippets, as most of the smartphone market becomes more commoditised. For example, the average size peaked in Q1’20 at 6.4” and is expected to fall to 6.26” in Q4’20. At the same time, average resolution has fallen under cost pressure. QHD+ share has fallen from a high of 19% in Q1’20 to an expected 4% in Q4’20. On the other hand, high refresh rate penetration is increasing in the longer term, although it will decline in the short term as Apple has not adopted it, yet. (BR)
