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EL SEGUNDO, CA – Global shipments of displays for mobile handsets are expected to decline more than 6% in 2009 and remain flat in 2010, as worsening economic conditions continue to impact the wireless industry, says iSuppli Corp.
iSuppli forecasts the mobile handset display market will decline to 1.5 billion units in 2009, down 6.2% year-over-year. Shipments will rise by a marginal 0.3% in 2010. The market won’t recover to exceed the 2008 level until 2011, when shipments will reach 1.65 billion units.
“The handset display market already was struggling in 2008 due to declining average selling prices and dwindling margins,” said Vinita Jakhanwal, principal analyst for mobile displays at iSuppli. “However, the downturn now is beginning to impact unit shipments, leading to revenue declines for the industry this year and next.
“The decreasing replacement rate for handsets due to deteriorating economic conditions will be the main cause for the market downturn. New handset demand from the emerging countries will not be sufficient to offset this decline.”
Beyond the slowdown, a major buildup in inventories of finished handsets will make the decline more severe in the beginning, says the firm. Indications of an inventory correction already had a major impact on the industry in the fourth quarter.
In response to this, handset display shipments from the top suppliers declined more than 40% sequentially in the fourth quarter.
During the current quarter, demand is expected to shore up slightly because of demand associated with the Chinese New Year, driven by domestic Chinese handset makers and the top-tier cellphone brands, according to iSuppli.
The mobile handset market has been characterized by declining display prices over the last few years. This mainly has been a result of the expansion of TFT-LCD capacity, as new investment has enabled newer generation fabs to meet the expanding demand for monitors, notebooks and LCD TVs.
Despite the economic slowdown, mobile-display panel pricing for all screen sizes and technologies is expected to maintain its historical annual decline rate of 15% to 20% this year. iSuppli believes the ASP decline in 2009 won’t be as severe as it was in 2008 for some specific panel types. Most suppliers have implemented capacity cuts and reduced their fab utilization rates in response to the slowing demand. This will help mitigate some of the more precipitous declines in prices, says the firm.
Despite decreases in pricing and declines in shipments, it is unlikely that top-tier customers will have difficulties procuring panels in 2009. With the current cuts in capacity utilization, the level of oversupply in the small/medium TFT-LCD industry may shrink, but it is doubtful any shortages will occur. When suppliers see orders increasing, they can ramp up production again easily.
iSuppli forecasts the mobile handset display market will decline to 1.5 billion units in 2009, down 6.2% year-over-year. Shipments will rise by a marginal 0.3% in 2010. The market won’t recover to exceed the 2008 level until 2011, when shipments will reach 1.65 billion units.
“The handset display market already was struggling in 2008 due to declining average selling prices and dwindling margins,” said Vinita Jakhanwal, principal analyst for mobile displays at iSuppli. “However, the downturn now is beginning to impact unit shipments, leading to revenue declines for the industry this year and next.
“The decreasing replacement rate for handsets due to deteriorating economic conditions will be the main cause for the market downturn. New handset demand from the emerging countries will not be sufficient to offset this decline.”
Beyond the slowdown, a major buildup in inventories of finished handsets will make the decline more severe in the beginning, says the firm. Indications of an inventory correction already had a major impact on the industry in the fourth quarter.
In response to this, handset display shipments from the top suppliers declined more than 40% sequentially in the fourth quarter.
During the current quarter, demand is expected to shore up slightly because of demand associated with the Chinese New Year, driven by domestic Chinese handset makers and the top-tier cellphone brands, according to iSuppli.
The mobile handset market has been characterized by declining display prices over the last few years. This mainly has been a result of the expansion of TFT-LCD capacity, as new investment has enabled newer generation fabs to meet the expanding demand for monitors, notebooks and LCD TVs.
Despite the economic slowdown, mobile-display panel pricing for all screen sizes and technologies is expected to maintain its historical annual decline rate of 15% to 20% this year. iSuppli believes the ASP decline in 2009 won’t be as severe as it was in 2008 for some specific panel types. Most suppliers have implemented capacity cuts and reduced their fab utilization rates in response to the slowing demand. This will help mitigate some of the more precipitous declines in prices, says the firm.
Despite decreases in pricing and declines in shipments, it is unlikely that top-tier customers will have difficulties procuring panels in 2009. With the current cuts in capacity utilization, the level of oversupply in the small/medium TFT-LCD industry may shrink, but it is doubtful any shortages will occur. When suppliers see orders increasing, they can ramp up production again easily.
It won’t be an easy 2009 for small/medium TFT-LCD mobile handset display suppliers, and 2010 will be only marginally better. However, if the suppliers can withstand the price cuts, volume reductions and capacity utilization drops, they should be positioned for a turnaround in 2011, iSuppli believes.
SANTA ANA, CA – Christopher Associates has agreed to distribute advanced manufacturing equipment and technology developed by China-based Orient Science & Technology for the manufacture and testing of solar modules.
Orient is a Chinese manufacturer of solar module manufacturing and test equipment with more than 50 site installations globally.
Christopher Associates is a sales, distribution and engineering company serving the electronics and solar industries.
BRUSSELS -- Intel today said it has filed a statement of objections to the European Commission' antitrust charges.
WUHAN, CHINA -- Foxconn Technology Group's (Hon Hai) large H-P program win could mean a major expansion for its plant here, with up to 10,000 new hires this year alone, according to published reports.
PALO ALTO, CA -- Hewlett-Packard, the world's leading PC maker, and Foxconn (Hon Hai) reportedly will invest $60 million toward a PC manufacturing site in Turkey.
The program will ultimately employ around 2,000 workers.
The units will be sold in Turkey and the Middle East, the reports said.
The program will ultimately employ around 2,000 workers.
The units will be sold in Turkey and the Middle East, the reports said.
MANILA – Integrated Microelectronics Inc., a top 30 EMS firm, saw revenues rise 5% in 2008 on double-digit growth of its operations in China and Singapore. The firm, a subsidiary of Ayala Corp., reported operating income of $18 million. Currency hedging and a one-time charge for manpower expenses and inventory obsolescence led to a $16 million loss for the year. Excluding these nonrecurring items, IMI’s net income would have been $32 million.
In 2008, IMI saw increased business with a leading Chinese telecommunications company and new customer programs. The company's operations in the Philippines and US were down on lower volumes, however.
SMYRNA, GA – PCB designers, engineers, fabricators and purchasing managers are invited to PCB Atlanta, a one-day free technical conference that takes place Oct. 22 at the Atlanta Marriott Alpharetta in Alpharetta, GA.
The to-be-announced technical program will include talks on HDI, routing and placement, surface finishes, board fabrication and other related topics.
The accompanying tabletop exhibition is expected to draw more than 40 suppliers to the printed circuit design and fabrication industry.
For more information, visit www.pcbshows.com or contact show manager Alyson Skarbek at skarbek@upmediagroup.com.
The trade show is one of a series sponsored by UP Media Group, parent company of Circuits Assembly and Printed Circuit Design & Fab.
EL SEGUNDO, CA – How will the TV market deal with the economic downturn and slowdown in sales growth in 2009?
iSuppli Corp. principal analyst Riddhi Patel on Wednesday takes on that question in a webinar, Will 2009 be the Year of Doom for TV Makers? The webinar takes place Feb. 25 at 11:30 AM EST.
Patel will shed light on how the television market will develop in 2009, what the key concerns are for the industry, and what strategies companies should employ to fuel demand.
The economic crisis is impacting the television market, both in terms of sales in developed regions and in exports from emerging nations.
Regions like Southeast Asia, China and parts of Latin America have seen a considerable impact on their television exports. Pair this with weakening consumer spending worldwide and it adds up to trouble for the entire television supply chain.
Other topics Patel will address: Which display technologies will survive the downturn? How will regional markets fare? Will price declines be sufficient to spur demand? Which strategies and brands will succeed?
For more information, visit http://www.isuppli.com/Events.aspx.
iSuppli Corp. principal analyst Riddhi Patel on Wednesday takes on that question in a webinar, Will 2009 be the Year of Doom for TV Makers? The webinar takes place Feb. 25 at 11:30 AM EST.
Patel will shed light on how the television market will develop in 2009, what the key concerns are for the industry, and what strategies companies should employ to fuel demand.
The economic crisis is impacting the television market, both in terms of sales in developed regions and in exports from emerging nations.
Regions like Southeast Asia, China and parts of Latin America have seen a considerable impact on their television exports. Pair this with weakening consumer spending worldwide and it adds up to trouble for the entire television supply chain.
Other topics Patel will address: Which display technologies will survive the downturn? How will regional markets fare? Will price declines be sufficient to spur demand? Which strategies and brands will succeed?
For more information, visit http://www.isuppli.com/Events.aspx.
SAN JOSE – North America-based manufacturers of semiconductor equipment posted
$285.6 million in orders in January, down 75% from a year ago, the SEMI trade group said. The book-to-bill was 0.48, well under the 1.0 benchmark indicating near-term growth.
WESTLAKE, OH -- Nordson Corp., parent company to EFD, Asymtek and other top electronics OEM suppliers, reported first-quarter sales fell 24% from a year ago to $187 million. For the quarter ended Jan. 31, net income was down 48% to $11 million.
EL SEGUNDO, CA — Vizio Inc. in the fourth quarter surpassed Sony to become
the US’s second-largest flat-panel television brand, according to iSuppli Corp.
Vizio accounted for 14.3% of flat panel TV (LCD and
plasma) unit shipments in the US in the fourth quarter, up
3.11 points from the third quarter. Sony and Samsung Electronics declined
0.42 points and 0.62 points, respectively, during the same period. Sony’s
share declined to 13.5% in the fourth quarter. Samsung was number one, with a 20.2% share.
No. 4
Panasonic saw shipments rising 3.12
points to a 10.7% share. LG was fifth at 10.6%.
“Brands are finding it hard to survive in the current economic climate amid tough price competition,” iSuppli said, noting a shakeout among suppliers. “Olevia LCD-TVs are no longer available since the company filed for bankruptcy in 2008. Pioneer has announced its exit from the television market. During 2009, a few value brands will disappear from the market. The brands that survive will be the ones that either own or have very close ties with the LCD and plasma panel makers, allowing them to keep their costs."
BILLERICA, MA -- Jabil Circuit will close its plant in Billerica by August, with most operations ending in May, the company told employees yesterday. About 350 employees will be laid off.
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