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20 December 2007


Handset LED market growth to slow

With 95% of handsets already using LED backlighting, LED makers estimate that LED shipment growth will slow next year to the 10% range, a growth rate just slightly ahead of the forecasted 9.1% growth for the overall global handset market, according to data from Digitimes Research.

Market analysts expect LED shipment growth in the handset market to be driven by the ‘white-box’ handset market, which will expand at a compound annual growth rate (CAGR) of about 25% between 2006 and 2010, with shipments of white-box handsets in China market reaching 40-60 million units this year. The analysts explained that, while in the past China-based white-box handset makers were pushing low-priced models, they are now seeing increased demand in China for higher-end products, which use LED backlights as well as LED-based flashes for cameraphones.

With the market for LED backlighting for handset applications maturing, pricing for handset-use LEDs has been dropping and, according to the LED makers, the overall production value of the handset LED market will decrease over the next two years, with related price quotes falling by about 30%.

However, despite the falling prices, Taiwan-based makers will see increased opportunities for shipment growth, as Japanese LED players are withdrawing from the handset-use LED market amid profit concerns, reckons Digitimes Research.

See related items:

White LED revenues to fall 15% by 2011, despite shipments doubling

Automotive LED market to double in 10 years

Automotive demand to drive LED market

China’s GaN LED production to overtake Japan in 2010, reckons CSA

LED lighting market to near $1.4bn by 2012

More LED power and efficiency needed to profit from general lighting market

LED market returns to double-digit growth in 2007

Search: LEDs Handset market