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Market for Handset With ‘Dream Displays’ Heating

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By Kim Yoo-chul

Staff Reporter

The nation’s two handset giants ― Samsung Electronics and LG Electronics ― have begun competing with mobile phones equipped with active-matrix organic light-emitting displays (AM OLEDs).

Samsung Electronics said on Friday that it will introduce AM OLED handsets with either 2.8-inch or 3.2-inch organic panels supplied by Samsung SDI in the first half of this year.

``We will unveil the phones no later than June, however, talks are still underway about which panel size will be used for the new model,’’ a spokesperson from Samsung Electronics told The Korea Times.

``No matter what the display sizes are, Samsung SDI will supply the panels,’’ the official added.

Industry sources say a much wider 3.2-inch screen is highly likely for Samsung Electronics new organic phone considering the increasing demand for user-friendly touch-screen models.

``The main strength of AM OLEDs is that users can enjoy multimedia functions with a much clearer image as organic displays do not require a backlight,’’ said one industry source.

In November last year, Samsung introduced only 1,000 units of the ``W2400 Special Edition'’ organic phones equipped with Samsung SDI’s 2.2-inch AM OLED panel at a retail price of 599,000 won in the local market.

The latest plan came after its cross-town rival LG Electronics launched organic display handsets Thursday with a year-on-year production target slated for 200,000 units in 2008 alone.

LG said the display in its new SH150A handset with a retail price of 440,000 won is 1,000 times faster than conventional crystal displays when it comes to response time.

AM OLEDs, often called ``dream displays,’’ are based on a highly competitive technology because they are self-luminous and have an edge over conventional liquid crystal displays in color, brightness, response time and thickness. As a result, the organic handset consumes almost 40 percent less power, a key merit for multimedia gadgets including mobile phones.

To take a bigger stake in the brighter sector, even the world’s No. 1 Nokia and No. 4 Sony Ericsson have reportedly been told to release series phones with organic displays this year.

``Mobile service providers will promote AM OLED phones as a marketing strategy for 3G, meaning the cost burden will not have much negative impact and sales will skyrocket,’’ an official from LG Electronics said, adding the price of display is only a part of the total phone cost.

``We have been discussing the supply of AM OLEDs with overseas phone makers and mobile service providers, while the company is in the second phase of investment to double the annual production capacity of AM OLEDs to 3 million from 1.5 million units,’’ an official from Samsung SDI ― the first mass producer of AM OLED ― said.

According to the data from DisplaySearch, a market research firm, the AM OLED market will grow to $5.58 billion in 2011, up from $220.5 million in 2007.

yckim@koreatimes.co.kr