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Smartphone panel prices falling

Prices for LCD and AMOLED panels for use in smartphones have all trended downward in May, as handset brands are adjusting their panel demand, while reeling from the adverse impacts of the pandemic, according to industry sources.

Demand for a-Si panels for entry-level handsets has suffered significant declines recently, as handset manufacturing factories in India are mostly operating at below 30% of their capacities at the moment after the Indian government started easing city lockdowns in the first half of May and allowed some factories to partially resume operations, said the sources.

Judging that some handset brands are delaying new model launches and also shortening the lifespans of older models – both undercutting panel demand – quotes for a-Si or LTPS smartphone applications will fall by US$0.2 on average in May, and those for AMOLED ones will drop by US$1, according to CINNO Research.

And according to Sigmaintell Consulting, global smartphone shipments dipped annually by 16.8% to 253 million units in the first quarter 2020, with the decline likely to worsen to 26% in the second quarter.

Smartphone shipments in the China market alone were down 44.3% on year to 49.2 million units in the first quarter and are expected to fall another 18% in the second quarter, added Sigmaintell.

Chinese handset brands have begun promoting 5G models, but prices of currently available 5G phones are CNY600-700 (US$84-99) higher than those for 4G models, which means that the average retail prices of smartphones in the China market in 2020 would be about 15% higher than those a year ago, Sigmaintell estimated.

The higher ASPs for 5G models could weaken replacement demand for smartphones, it noted.

—Digitimes

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