DisplaySearch Reports Mobile Phone Display Shipments Rise 19% Y/Y to 223M in Q3'04.

AUSTIN, Texas -- DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, reported in the latest Quarterly Mobile Phone Shipment and Forecast Report that mobile phone main display and subdisplay shipments reached 183 and 41 million units, respectively in Q3'04. Mobile phone main display shipments grew faster than the number of mobile phones, which is estimated at 167 million in Q3'04. Subdisplays were up 6% Y/Y, but down 9% sequentially and are expected to decline through Q1'05 because of shifts to slider set designs and the desire for lower costs. The cumulative display inventories at the end of 2004 are forecasted to be 41%, 24% and 18% of MSTN, CSTN and AMLCD mobile phones shipments, respectively. MSTN and CSTN are expected to be in oversupply in 2005 due to cumulative inventory levels and the slowing of mobile set demand growth.

Additional highlights from the report include the following:

--Color phones with digital imaging capabilities are driving phone sales, rising from 50 million units in 2002 to over 180 million sets in 2004.

--By technology, Q3'04 was the first quarter when CSTN display shipments were down Q/Q. a-Si TFT LCD shipments were up 13% and p-Si TFT LCDs were up 20% sequentially due to a continuing shift from passive matrix to active matrix color displays.

--Sharp was #1 in main display revenue at 17.0% share and #4 in shipments at 11.3%, Samsung SDI was #1 in shipments at 19.7% and #2 in revenue at 14.7% and Epson was #3 in revenue and shipments at 14.0% and 13.3%, respectively.

--Samsung SDI was also the leader in subdisplay shipments with a 28.9% share followed by Optrex at 9.8% and Wintek at 7.4%.

--For color mobile phones, 128 x 128 was the most popular resolution followed by 176 x 220 and 128 x 160. Higher resolution 240 x 320 is expected to gain share in upper end mobile phone products as video becomes more important.

--OLEDs reentered the main display market in small volume during Q3'04 and are expected to grow in upcoming quarters.

Display purchases tend to be a good predictor of mobile phone demand shipment share for the next quarter. In terms of main displays purchased in Q3'04, Nokia led with a 31.0% share, recovering from their drop below 30% in 1H'04. With a 13.8% share, Motorola narrowly regained second place from Samsung, which dropped back to third with a 13.5% share.

The Quarterly Mobile Phones Shipment and Forecast Report provides valuable market intelligence to the mobile phone market, revealing mobile phone shipments by brand, region, display technology, size, resolution, and panel supplier for the previous quarter, and forecasts this information forward on a rolling two-quarter basis. This issue includes increased coverage, with the number of display types covered up from 10 to 19. This report is delivered in PowerPoint. Please contact Brooke Thomas at DisplaySearch at 512-459-3126 or [e-mail] for subscription information.

About DisplaySearch

DisplaySearch (www.displaysearch.com) is the worldwide leader in market research and consulting for the flat panel display (FPD) industries. Founded in 1996, DisplaySearch serves a growing multinational client base, with an extensive array of market intelligence reports, advisory services, and global business conferences. The firm surveys the entire display industry food chain, including component and equipment manufacturers, display producers, OEMs, distributors and retailers. From this comprehensive vantage point, DisplaySearch prepares a valued suite of market forecasts, technology assessments, studies and analyses, and produces influential industry events worldwide. The firm is comprised of a core team of 19 analysts located in Japan, Korea, North America and Taiwan.