AMOLED display panels are now cheaper to manufacture than LCD

Superior to LCD panels, AMOLED are some of the most advanced displays on the market; but for all their worth, the technology’s higher manufacturing cost has long blocked the path toward a greater dissemination. This may finally change—a recent report by IHS Technology suggests that for the first time, it’s less expensive to produce an AMOLED than an LCD.

There are several key differences between LCD and AMOLED panels and their ability to produce images. Unlike the LCD, AMOLED doesn't use backlights; instead, they illuminate each pixel individually, resulting in a color rendition that’s far more vibrant, with deeper blacks and sharper contrasts. LCDs must illuminate the entire backlight every time the screen turns on while AMOLED can light a few pixels at a time with minimal power consumption, hence why the mobile device market has been the first to adopt AMOLED.

Obvious benefits aside, it was only until recently that the AMOLED production costs dropped low enough to justify ramping up production; this partially to explain why OLED televisions dominated CES 2016. IHS points out that at the end of 2015, it cost $17.10 to construct a five-inch 1080p AMOLED display while $15.70 for the LCD. A few months later, we see that these figures have dropped substantially, with the AMOLED now costing $14.30, but the LCD is $14.60.

The price drop stems from Samsung Electronics’ increased effort to dominate the Android phone market, with the South-Korean company opening enough new production facilities to increase the supply of AMOLED available to third-party manufacturers. The increased supply causes a drop price, which sparks an increase in demand on behalf of other gadget makers.

IHS Technology predicts that the price drop trend will continue a downward trajectory for the next few months, an effect which could see the high-quality panel expanding into the lower budget phones if manufacturing facilities are equipped to handle AMOLED mass production. At the same time, we should begin to see fewer and fewer LCDs on the market as AMOLED becomes increasingly affordable.

Source: DigitalTrends via IHS Technology