Phone Makers Under Price Pressure

Trendforce of Taiwan has pointed to issues of component shortage that will cause trouble for smartphone suppliers with displays among the problem components, especially AMOLED. Other components in trouble include DRAM and NAND Flash. The DRAM used in smartphones is optimised to run at lower voltage (LPDDR4X) and prices are forecast to rise 10%. The specification race for storage is also causing price pressure for Glash memory. More price increases are expected in the second half.

Trendforce expects that OLED-based smartphone share will increase from 23.8% to 27.7% this year and LPTS LCD will go up from 31.5% to 34.8%, which means that a-si LCDs will drop to 37.4%.