A 5.5-inch AMOLED display, currently priced at $34, is expected to become cheaper at $25 to $28. But liquid cystal display, or LCD, prices will remain flat at around $26 to $29 in the first quarter next year, IHS said.
Samsung Display’s improved production capacity is one of the biggest contributing factors to the price drop, according to the report.
The production yield rate of the firm for AMOLED has greatly improved for the past five years since the production lines went into operation, while depreciation cost fell during the same period.
And as more display makers are expected to jump in the AMOLED display sector, the price drop will continue to accelerate.
“The Chinese government is also moving its weight from the LCD industry to the OLED segment, luring more players into the segment by providing financial benefits,” an industry source was quoted as saying by tech news media Digital Times.
By Kim Young-won (firstname.lastname@example.org)