Weak Demand and Expanding Capacity Lead to Ongoing ASP Declines for Smartphone Displays, According to NPD DisplaySearch

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Tablet PC Display ASPs Remain Stable, but Declines Expected in Q4 2013

Figure: Smartphone and Tablet PC Display ASP

Compared with 2012, panel makers are facing weaker growth of smartphone shipments, but greater interest in larger panels.

Weak demand from white-box brands and expanding production capacity for smartphone panels led to a month over month decline in ASPs for smartphone displays in September 2013.

According to the NPD DisplaySearch Monthly Smartphone and Tablet PC FPD Pricing Report, strong competition from branded entry-level products had made demand for white-box brands weak for months. Panel makers, however, continued to expand their smartphone panel capacity, which led to declines in smartphone display ASPs in July, August, and September. These declines were also due in part to efforts by panel makers to boost shipments of smartphone displays greater than 3.5”. Meanwhile, China Mobile stopped subsidizing 3.5" phones, so the industry in China has moved to larger sizes.

For example, after increasing to $12.50 in Q2’13, ASPs for 4.5’’ 854 × 480 IPS/FFS mode modules fell to $11.70 in August and $11.50 in September, and prices are expected to decline still further, dropping to $11.20 by November. “Compared with 2012, panel makers are facing weaker growth of smartphone shipments, but greater interest in larger panels,” said Terry Yu, small/medium displays and display technologies analyst for NPD DisplaySearch. “This has caused them to expand capacity and compete based on price.”

Unlike the smartphone display market, major tablet PC brands negotiate ASPs on a quarterly basis; therefore, ASPs for mainstream tablet PC FPDs were unchanged in September, but are expected to decline in Q4’13, as manufacturing capacity is re-allocated from higher-generation fabs that were originally designed for large panel production. One exception was the iPad Retina display panel, which increased in price in September as production for the iPad Air ramped up.

Figure: Smartphone and Tablet PC Display ASP
[See attached chart]
Source: NPD DisplaySearch Monthly Smartphone and Tablet PC FPD Pricing Report

The NPD DisplaySearch Monthly Smartphone and Tablet PC FPD Pricing Report provides subscribers with reliable market average prices for mainstream smartphones and tablet PC panels. Coverage includes history from January 2013 to a three-month rolling forecast. For more information about this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact(at)displaysearch(dot)com or contact your regional DisplaySearch office in China, Japan, Korea, or Taiwan for 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: @npdtech and @npdgroup.

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