According to iSupply

Aug 14, 2009 14:28 GMT  ·  By

According to a recent report from iSuppli, the shipments of 2.5- to 4.9-inch handset displays that boast QVGA resolutions or higher are expected to see a massive growth during the ongoing year. The research firm says that the shipments should reach 149.9 million units in 2009, marking a rise of 22.1 percent when compared to the 122.8 million units shipped last year. In addition, the overall shipments of handset displays are expected to drop about 11 percent during the year.

The devices that will help the high resolution display shipments grow are those that compete against Apple's iPhone handset. Although the overall shipments will decline, these smartphones will help a certain area of the market to see an increase, the firm states. This is also the result of a continuous growth high-end smartphones have been registering lately, it seems.

“The continued success of Apple's iPhone is driving market demand for competitive products,” said Vinita Jakhanwal, principal analyst for small- to medium-size displays at iSuppli, DigiTimes reports. “Companies are rolling out a range of iPhone killers, including new products based on Google's Android operating system. To this end, many OEMs are introducing higher-end, multimedia-enabled phones that include larger displays with superior resolutions.”

iSuppli also says that the handset display market is expected to see a recovery in the following quarters, mainly based on the fact that the demand for smartphone displays has increased and that the demand from Chinese mobile phone makers is also strengthening. The growth already started in the second quarter, after falling 17.4 percent during the fourth quarter of 2008 and 8.5 percent in the first quarter of this year.

“Early indicators from the Taiwanese small- to medium-size suppliers are pointing to a strong third-quarter performance,” Jakhanwal said. “The Taiwanese vendors are significant suppliers to the Chinese handset makers for both the branded and white-box markets. Incentives from the Chinese government have helped boost demand for consumer electronics, including handset, in rural China. The government is looking at expanding this program further.”