The end of smartphone subsidies in China will affect the wider market, says NPD DisplaySearch. Direct subsidies are to end, being replaced with consumer call charge subsidies. The inventory of name brands is expected to be affected, as are upstream industries.
Declining smartphone ASPs will be hastened by the move, says DisplaySearch. The average price of a 5″ IPS panel, with 1280 x 720 resolution, was $25 in August 2013 but had fallen 44% – to $14 – by August 2014. The current supply of mobile phone displays, which is ‘adequate’, will also drive falling prices.
“[W]ith [the] iPhone 6 in the mix, both smartphone display procurement demand and ASP performance would improve”, noted DisplaySearch’s Terry Yu. Apple will launch the iPhone 6 in the country this month.