MP3 players with larger screens will support e-book reading, gaming and video playback to boost adoption.
China suppliers of flash MP3 players with OLED displays are setting their sights on midsize-panel units in a bid to prop up sales and close the gap with LCD rivals. Most releases now pack 1.5 to 2.8in screens that can support popular add-on functions such as e-book reading, gaming and video playback. Output of this type is forecast to rise significantly in the next 12 months as more companies join the bandwagon.
Further declines in fraction defectives and the cost of medium-sized panels are providing additional impetus to manufacturers. OLED panels nevertheless remain 15 to 20 percent more expensive than LCDs, which continues to be a major concern for makers.
High input spending is in fact one of the main reasons why OLED types account for only 10 to 15 percent of China’s overall output of flash MP3 players. Another factor is the size of the panel available for adoption, which has been limited to 1 to 1.3in and smaller than LCD variants.
But while companies admit that the sector will continue to trail LCD rivals, they emphasize the core advantages of OLED-enabled units to sustain growth. Makers said the latter delivers better display effects, faster response time, lower power consumption and thinner external designs. Rapid technological advancements are expected to put the product on a par with LCD counterparts in the near future.
Increasing demand is encouraging suppliers to stay in the line. Most enterprises’ output and exports have been relatively stable or seen a slight increase. In the next six months, shipments are expected to grow by about 5 percent based on several factors.
Firstly, orders from the US and the EU are recovering in the midrange and high-end segments. The two regions already make up 70 to 80 percent of deliveries, a proportion that is expected to increase further by about 10 to 20 percent YoY. T-Link Industrial Development Co. Ltd continues to rely on the US as a main export destination. The company sends 95 percent of its OLED players to the country and the EU.
Moreover, emerging markets in Southeast Asia, Eastern Europe, the Middle East, South America and Africa will boost demand. To grab a foothold in these areas, makers are introducing entry-level products there. Such units feature small panels and integrate basic functions at a low price.
Shipments to new markets are forecast to increase by at least 5 percent even as manufacturers emphasize the EU and the US. Complementing the boost in export volume is the drop in prices. The reduction will be a result of climbing productivity among OLED panel providers. For more on Makers emphasize midsize-panel flash MP3 player models.
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