Staying OLED of the game

Organic Light Emitting Diodes (OLEDs) are enjoying a buoyant market according to iSuppli

At the Society for Information Display (SID) 2008 International Symposium,
Seminar and Exhibition, held in California recently, the biggest buzz was
generated by the vivid images and brilliant colours of Organic Light Emitting
Diodes (OLEDs), according to iSuppli.

The OLED industry will be on a rapid growth path during the next few years, with
worldwide panel revenue rising at a more than 36 percent Compound Annual Growth
Rate (CAGR) from 2007 to 2013, predicted the analyst.

New bright and clear Active-Matrix OLEDs (AM-OLEDs) will account for the
majority of OLED panel market growth, with revenue rising by 86 percent during
the same timeframe.

The catalyst to this new market reaction has been the arrival of Sony's
compelling OLED television, reported Vinita Jakhanwal, principal analyst for
mobile displays at iSuppli. Global shipments of AM-OLED panels for applications
including TVs, mobile handsets and PMP players will nearly quadruple in 2008,
rising to 10.2 million units, up 294.2 percent from 2.6 million units in 2007.

AM-OLED revenue in 2008 will rise by 237 percent to reach $225 million, up from
$67 million in 2006. By 2013, global AM-OLED shipments and revenue will rise to
132.4 million units and $2.8 billion.

But while the OLED industry is set for strong growth in 2008 and beyond, look
before you leap, warns Jakhanwal. "The business face some supply-side and
competitive challenges that could limit its expansion in the coming years.The key factors determining for the success of OLED in the market will be the display industry’s ability to address key issues - like manufacturing costs, material lifetime and efficiency,” added Jakhanwal. "Given that OLEDs are LCD replacements, the technology at least initially will be subjected to the price pressures placed on it by
competing LCD panel products.”