The worldwide AMOLED market will grow to 185.2 million units by 2014, rising at a Compound Annual Growth Rate (CAGR) of 84.2%, up from 2.6 million units in 2007, according to iSuppli. Revenue is expected to grow in concert, expanding to US$4.6 billion by 2014, up at a CAGR of 83.3% from US$67 million in 2007.
In order to accelerate the process of migrating AMOLED technology from niche to mass market, multiple suppliers must add to their manufacturing resources and ramp up production quickly, Jakhanwal advised. "While mobile handsets are the obvious main target for the technology, these phones require multiple sources of suppliers with sufficient volumes to meet demand. It's unlikely that a single company will be able to fulfill this demand in the short term because no supplier presently has sufficient capacity."
Furthermore, instead of focusing on the entire mobile handset market, suppliers initially should target only high-end wireless phones because this will allow them to justify producing products with superior images that command higher Average Selling Prices (ASPs) than other displays. High-end QVGA resolution handsets could generate high-volume demand for AM-LCDs. However, the ASPs of AMOLEDs must decline in order to compete with TFT-LCDs.
Finally, aggressively improving manufacturing yields and efficiency is a must for AMOLED suppliers in order to reduce the costs of their products. These issues have plagued the AMOLED business since its inception. iSuppli believes AMOLED equipment, Intellectual Property (IP), material and panel companies should collaborate to overcome these manufacturing challenges. This will help build on each company's strengths and avoid duplication of effort.