Latest news with #DavidHsieh
Business Upturn
4 days ago
- Business
- Business Upturn
Omdia: Inventory Adjustments to Trigger 10% Drop in Small and Medium Display Shipments in 2Q25
London, United Kingdom: New analysis from Omdia's quarterly small medium display market tracker reveals shipment will decline by 10% quarter-on-quarter (QoQ) and 6% year-on-year in 2Q25. This downturn is due to business and inventory adjustments among small medium display application device makers, particularly smartwatch and smartphone makers. Tariff risks previously prompted these manufacturers to aggressively build up panel inventories in 4Q24 through 1Q25. However, as tariffs concerns eased in 2Q25, device makers have become more cautious with their purchasing plan, leading to reduced panel shipments. This press release features multimedia. View the full release here: Small medium display shipment (million units) and quarterly growth (percentage) According to Omdia's Small Medium Display Market Tracker, small medium display shipments (all displays for under 9-inches) reached 1,048 million units in 1Q25. Of these shipments, AMOLED panels (Active Matrix OLED) accounted for 612 million units, representing 58% market share. Small medium AMOLED panels were primarily shipped for smartphone and smartwatch applications, with smaller volumes going to automotive and game applications. Strong shipments in 1Q25 were driven by inventory build-up efforts and tariff risk management by small medium display applications brands and OEMs, as well as high-capacity utilization among AMOLED panel makers. While smartphones remained exempt from reciprocal tariffs in 1Q25, smartphones made in China faced a 20% tariff when imported to the US. Given that 80% of Apple's iPhones were assembled in China and 34% of iPhones were shipped to the US, panel inventory preparation of potential tariffs was particularly prominent. Additionally, China's special consumer electronics subsidy stimulated robust domestic smartphone purchases during the same period. However, small medium display shipments are expected to decline to 942 million units in 2Q25 due to ongoing inventory adjustments. AMOLED shipments will account for 551 million units maintaining a 58% market share. Mobile phone displays including OEM cell and smart watch display will experience the sharpest declines dropping 14% and 18% QoQ respectively. In contrast, amusement displays will grow significantly by over 100% QoQ due to the launch of new mobile game consoles. 'The small medium display market is traditionally seasonal with the strongest growth typically occurring in the second half of the year. However, the 10% QoQ decline in 2Q25 clearly demonstrates the unique impact of tariff risks and inventory adjustments,' said David Hsieh, Senior Director for Display research in Omdia. 'Meanwhile, AMOLED panels have maintained a stable share of 58% of total small medium display shipments, putting increased pressure on , particularly LTPS TFT LCD fab, to sustain their business over the long term. By contrast, shipments of a-Si TFT LCD panels for entry level mobile phones have been stable, encouraging more China LCD makers to produce small medium a-Si TFT LCD panels in their Gen8.5 and Gen8.6 LCD Fabs.' We anticipate a return to growth in 3Q25 due to the continued diversification of the small medium display market beyond smartphones into a wider variety of device and applications.' ABOUT OMDIA Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions. View source version on Disclaimer: The above press release comes to you under an arrangement with Business Wire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Yahoo
4 days ago
- Business
- Yahoo
Omdia: Inventory Adjustments to Trigger 10% Drop in Small and Medium Display Shipments in 2Q25
LONDON, June 19, 2025--(BUSINESS WIRE)--New analysis from Omdia's quarterly small medium display market tracker reveals shipment will decline by 10% quarter-on-quarter (QoQ) and 6% year-on-year in 2Q25. This downturn is due to business and inventory adjustments among small medium display application device makers, particularly smartwatch and smartphone makers. Tariff risks previously prompted these manufacturers to aggressively build up panel inventories in 4Q24 through 1Q25. However, as tariffs concerns eased in 2Q25, device makers have become more cautious with their purchasing plan, leading to reduced panel shipments. According to Omdia's Small Medium Display Market Tracker, small medium display shipments (all displays for under 9-inches) reached 1,048 million units in 1Q25. Of these shipments, AMOLED panels (Active Matrix OLED) accounted for 612 million units, representing 58% market share. Small medium AMOLED panels were primarily shipped for smartphone and smartwatch applications, with smaller volumes going to automotive and game applications. Strong shipments in 1Q25 were driven by inventory build-up efforts and tariff risk management by small medium display applications brands and OEMs, as well as high-capacity utilization among AMOLED panel makers. While smartphones remained exempt from reciprocal tariffs in 1Q25, smartphones made in China faced a 20% tariff when imported to the US. Given that 80% of Apple's iPhones were assembled in China and 34% of iPhones were shipped to the US, panel inventory preparation of potential tariffs was particularly prominent. Additionally, China's special consumer electronics subsidy stimulated robust domestic smartphone purchases during the same period. However, small medium display shipments are expected to decline to 942 million units in 2Q25 due to ongoing inventory adjustments. AMOLED shipments will account for 551 million units maintaining a 58% market share. Mobile phone displays including OEM cell and smart watch display will experience the sharpest declines dropping 14% and 18% QoQ respectively. In contrast, amusement displays will grow significantly by over 100% QoQ due to the launch of new mobile game consoles. "The small medium display market is traditionally seasonal with the strongest growth typically occurring in the second half of the year. However, the 10% QoQ decline in 2Q25 clearly demonstrates the unique impact of tariff risks and inventory adjustments," said David Hsieh, Senior Director for Display research in Omdia. "Meanwhile, AMOLED panels have maintained a stable share of 58% of total small medium display shipments, putting increased pressure on , particularly LTPS TFT LCD fab, to sustain their business over the long term. By contrast, shipments of a-Si TFT LCD panels for entry level mobile phones have been stable, encouraging more China LCD makers to produce small medium a-Si TFT LCD panels in their Gen8.5 and Gen8.6 LCD Fabs." We anticipate a return to growth in 3Q25 due to the continued diversification of the small medium display market beyond smartphones into a wider variety of device and applications." ABOUT OMDIA Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions. View source version on Contacts Media Contact: Fasiha Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
4 days ago
- Business
- Business Wire
Omdia: Inventory Adjustments to Trigger 10% Drop in Small and Medium Display Shipments in 2Q25
LONDON--(BUSINESS WIRE)--New analysis from Omdia's quarterly small medium display market tracker reveals shipment will decline by 10% quarter-on-quarter (QoQ) and 6% year-on-year in 2Q25. This downturn is due to business and inventory adjustments among small medium display application device makers, particularly smartwatch and smartphone makers. Tariff risks previously prompted these manufacturers to aggressively build up panel inventories in 4Q24 through 1Q25. However, as tariffs concerns eased in 2Q25, device makers have become more cautious with their purchasing plan, leading to reduced panel shipments. According to Omdia's Small Medium Display Market Tracker, small medium display shipments (all displays for under 9-inches) reached 1,048 million units in 1Q25. Of these shipments, AMOLED panels (Active Matrix OLED) accounted for 612 million units, representing 58% market share. Small medium AMOLED panels were primarily shipped for smartphone and smartwatch applications, with smaller volumes going to automotive and game applications. Strong shipments in 1Q25 were driven by inventory build-up efforts and tariff risk management by small medium display applications brands and OEMs, as well as high-capacity utilization among AMOLED panel makers. While smartphones remained exempt from reciprocal tariffs in 1Q25, smartphones made in China faced a 20% tariff when imported to the US. Given that 80% of Apple's iPhones were assembled in China and 34% of iPhones were shipped to the US, panel inventory preparation of potential tariffs was particularly prominent. Additionally, China's special consumer electronics subsidy stimulated robust domestic smartphone purchases during the same period. However, small medium display shipments are expected to decline to 942 million units in 2Q25 due to ongoing inventory adjustments. AMOLED shipments will account for 551 million units maintaining a 58% market share. Mobile phone displays including OEM cell and smart watch display will experience the sharpest declines dropping 14% and 18% QoQ respectively. In contrast, amusement displays will grow significantly by over 100% QoQ due to the launch of new mobile game consoles. 'The small medium display market is traditionally seasonal with the strongest growth typically occurring in the second half of the year. However, the 10% QoQ decline in 2Q25 clearly demonstrates the unique impact of tariff risks and inventory adjustments,' said David Hsieh, Senior Director for Display research in Omdia. 'Meanwhile, AMOLED panels have maintained a stable share of 58% of total small medium display shipments, putting increased pressure on , particularly LTPS TFT LCD fab, to sustain their business over the long term. By contrast, shipments of a-Si TFT LCD panels for entry level mobile phones have been stable, encouraging more China LCD makers to produce small medium a-Si TFT LCD panels in their Gen8.5 and Gen8.6 LCD Fabs.' We anticipate a return to growth in 3Q25 due to the continued diversification of the small medium display market beyond smartphones into a wider variety of device and applications.' ABOUT OMDIA Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Yahoo
03-04-2025
- Business
- Yahoo
Omdia: Display Makers Cut Capacity Utilization During Uncertainty Over Display Application Tariffs
LONDON, April 03, 2025--(BUSINESS WIRE)--According to the latest report from Omdia's Large Area Display Production Strategy Tracker, display panel makers maintained a fab utilization above 80% in 1Q25 but are expected to reduce utilization in 2Q25. As the pull-in demand for 1Q25 winds down at the start of 2Q25, set makers are adopting a more conservative approach to panel purchases. Uncertainty surrounding the new U.S. tariffs on display application products including TVs, PCs and smartphones, combined with reduced panel orders from brands and OEMs, is prompting panel makers to scale back capacity utilization. Omdia predicts utilization will drop below 80% in April 2025 and further to 76% in May 2025. Since 4Q24, panel makers have operated fabs at high utilization levels of 81%-83% driven in part by China's "swap old for new" subsidy program which has boosted demand for LCD TV panels. Chinese TV manufacturers have accelerated production and shipments to the U.S. to mitigate tariff risks, pushing demand higher in early 2025, particularly for 75 inches and larger LCD TV panels. However, concerns over new potential U.S. tariffs starting in April and uncertainties in display panel demand have led to PC and TV set makers reduce their panel inventory purchases. Some have already reduced their panel orders for 2Q25. In Omdia's February 2025 outlook, April utilization was expected to be 82% and May at 78%. However, with some China TFT LCD makers planning extended breaks for the May Labor Day holiday utilization could fall further to around 75% in May. "With demand slowing and uncertainty around tariff impact, panel makers are shifting from their original high capacity utilization mode back to the production-to-order mode," said David Hsieh, Senior Director for Display research in Omdia. "This strategy should help stabilize panel prices amid weakening demand. . However, since panel prices have remained elevated over the past six months, TV and PC brands and OEMs may push for further price reductions to offset U.S. tariffs. Hsieh added, "The display market is entering into a new cycle and will likely stabilize later in 2025. Tariffs and their impact on display demand will be the biggest swing factor in this transition." ABOUT OMDIA Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions. View source version on Contacts Fasiha Khan:
