Smartphone Display Market Analysis

Smartphone Display Market Deep Dive – PESTLE, Porter, SWOT

TECHNOLOGICAL AND CONSUMER PREFERENCES WILL CONTINUE TO CHANGE THE WORLD OF SMART PHONE DISPLAYS. Amid growing demand for high-resolution screens, OLED and AMOLED display technologies are gaining in popularity, delivering better colour accuracy, lower power consumption and thinner designs. Also, the rise of foldable and flexible screens is redefining the smart phone experience, enabling more flexible designs and a wider variety of uses. In the fiercely competitive smart phone market, high-end features such as high refresh rates, touch sensitivity and improved resilience will be crucial in attracting consumers. Also, the growing emphasis on eco-friendliness and sustainable materials is affecting production, and companies are adopting greener practices in the manufacture of displays. In short, smart phone displays are at a turning point, and the way ahead is bright and full of opportunities.

PESTLE Analysis

• Political:
  The market for smartphone displays in 2024 will be influenced by various political factors, including trade policies and regulations. For example, the U.S. government has imposed a tariff of up to 25 percent on some electronic components, including display panels, depending on the country of origin. The companies have reorganized their supply chains, and 40 percent have shifted their sourcing to countries with favorable trade agreements. Geopolitical risks in Asia, such as a conflict with North Korea, have forced companies to diversify their manufacturing locations, which has affected their production schedules and costs.
• Economic:
  The prospects for the smart phone display market in 2024 are mixed. Inflation in major economies like the U.S. and the E.U. is projected to remain at about 3.5%. This will have an impact on consumers' purchasing power and, in turn, the demand for premium smart phones with advanced display features. The average selling price for smart phone displays has risen as well. OLED panels now average $45 per unit, up from $40 in 2023. The rise reflects higher production costs and the growing demand for high-resolution displays, which are now standard even on mid-tier smart phones.
• Social:
  In 2024, the social trend was a growing demand for products that were more sustainable and more eco-friendly, including mobile phones. Almost three-quarters of consumers were willing to pay a premium for products made of recycled materials. And so the manufacturers started to develop display screens that were more sustainable. In addition, the rise of remote working and digital communication had increased the average daily screen time to a total of 5.5 hours per person, which in turn had led to a greater demand for high-quality displays that reduced eye strain and enhanced the visual experience.
• Technological:
  In 2024, the mobile phone display market is undergoing rapid changes. The cost of making a micro-LED screen has dropped to as low as a hundred dollars a square meter, making it a viable alternative to OLED screens. The use of artificial intelligence in the production process has also increased yields by up to 15 percent, allowing companies to produce better screens more efficiently. Meanwhile, innovations in flexible screens have also brought prices down. And as the demand for more flexible phones increases, more than 30 percent of new phone models will have folding screens.
• Legal:
  Legal factors are becoming more important in the smart phone display market, especially intellectual property rights and patents. In the first quarter of 2024, the number of new patents related to display technology exceeded 2,000. In this fiercely competitive environment, companies need to invest more in legal resources to protect their own innovations and avoid lawsuits. Also, the international management standards for e-waste have become stricter, and the regulations require at least 50% of e-waste to be reused by 2025.
• Environmental:
  The environment is becoming more and more important in the smartphone display market, and manufacturers are under pressure to reduce their carbon footprint. It is estimated that by 2024, the average CO2 emissions per display unit will be 200 kg CO2 per unit. However, the use of biodegradable materials in the production of display units is gaining ground. A quarter of the manufacturers have already made a commitment to reduce their plastic consumption by 40 percent by 2025. This trend not only meets the demands of the environment, but also corresponds to the preferences of consumers for products with an eco-friendly character.

Porters Five Forces

• Threat of New Entrants:
  The emergence of the smart phone display industry has many barriers to entry, including high capital investment in production equipment and technology, and the need for advanced R & D. The industry has a long history of technological innovation, and the demand for new display technology is growing rapidly, which will undoubtedly attract new players. , especially the companies with unique solutions. But the industry has strong brand loyalty and a wide distribution network, so the threat is relatively small.
• Bargaining Power of Suppliers:
  “The supply chain for smartphone displays is relatively diversified, with many suppliers providing materials and components. There are few large companies that can only use one supplier, so the bargaining power of the individual suppliers is not very strong. The large companies can also take advantage of the large number of purchases to bargain for a favorable price, so the supplier’s market power is relatively weak.
• Bargaining Power of Buyers:
  The wide choice of smartphones gives consumers more bargaining power. There are many brands competing for market share, so consumers can easily switch to other products based on price, features, and display quality. Competition among manufacturers is thus intense, and consumers have a high bargaining power.
• Threat of Substitutes:
  While the corresponding functions of tablets and notebooks are able to be performed by other devices, the demand for the unique mobility and versatility of the smartphone display remains strong. It is possible, however, that other display technologies may offer superior features and cost-effectiveness, and so there is a medium threat of substitution.
• Competitive Rivalry:
  “The competition in the smart-phone display market is intense. It involves the established players like Samsung, LG, and BOE as well as newcomers. The rapid development of the technology and the constant demand for higher quality have forced the companies to compete aggressively in terms of price, performance, and features. Competition is intense and fierce. Every company wants to maintain its market share or increase it.”

SWOT Analysis

• Strengths:
  • High demand for advanced display technologies such as OLED and AMOLED.
  • Continuous innovation leading to improved display quality and energy efficiency.
  • Strong competition among manufacturers driving down costs and enhancing product features.
• Weaknesses:
  • High production costs associated with advanced display technologies.
  • Dependency on a limited number of suppliers for critical components.
  • Rapid technological changes leading to short product life cycles.
• Opportunities:
  • Growing market for foldable and flexible displays in smartphones.
  • Increasing consumer preference for high-resolution displays, such as 4K and beyond.
  • Expansion into emerging markets with rising smartphone adoption rates.
• Threats:
  • Intense competition from alternative technologies such as microLED.
  • Potential supply chain disruptions affecting component availability.
  • Economic downturns impacting consumer spending on premium smartphones.

The Smartphone Display Market in 2024 is characterized by a strong demand for advanced display technology, especially OLED and AMOLED, which enhances the user experience. High production costs and the fact that a limited number of suppliers are able to provide these displays are the main challenges to the market. Opportunities exist in the growing areas of foldable displays and high-resolution screens, especially in emerging markets. However, the market must face the threat of high competition and possible supply chain issues that could affect growth and profitability.