Category Archives: Displays

Despite the low seasonality factor and brands turning their focus away from volume growth, the demand for large display panels showed better-than-expected results in the first quarter of 2018, albeit still weak, according to IHS Markit (Nasdaq: INFO).

First quarter of each year is typically a slow season for the display market as set brands try to clear out carried inventories before they launch new models in a new year. In addition, particularly this year, top-tier brands were expected to stop focusing on volume growth, which lowered market expectation on the panel demand.

However, shipments of large display panels posted better-than-expected results in the first quarter of 2018, according to Large Area Display Market Tracker by IHS Markit. Compared to a year ago, shipments of large displays — larger than 9 inches — increased by 6 percent in unit and by 10 percent in area.

LG Display retained its lead in the large display panel market in terms of area shipments with a stake of 22 percent, followed by Samsung Display with 17 percent, while, in terms of unit shipments, BOE led the market with a 22 percent share.

“In area shipments, South Korean panel makers keep their leading position in the large display market as they are strong in the TV display market,” said Robin Wu, principal analyst at IHS Markit.

Shipments of TV displays increased by 12 percent in unit and by 11 percent in area in the first quarter of 2018 compared to a year ago, leading to the better-than-expected trend. In particular, unit shipments of 55-inch and larger TV panels jumped 20 percent year on year in the first quarter. 4K TV display unit shipment also increased by 19 percent during the same period to 24.6 million units, and OLED TV display shipments reached some 600,000 units with 110 percent year-on-year growth.

051518_Large_area_display_unit_shipment_share_by_maker_in_Q1_2018 051518_Large_area_display_area_shipment_share_by_maker_in_Q1_2018

“Increases in large display panel production capacity, particularly in China, helped the year-on-year shipment growth, which was somewhat expected,” Wu said. “But, if you look at the shipment growth in a quarter-on-quarter term, it is quite interesting.”

For the past three years from 2015 to 2017, on average, unit shipments of large display declined 10 percent in the first quarters compared to the previous quarter, and area shipments were down 8 percent.

“This year also shows declines in the first quarter with a 4 percent drop in unit shipments and 7 percent down in area shipments, but the contraction is narrower than the previous years,” Wu said. “This indicates the shipment trend in first quarter 2018 was better than expected.”

051518_Large_display_shipments

Wu noted, however, that shipments dropped 10 percent in value due to continued erosion in panel price, which began in mid- 2017.

“The major concerns to the panel makers is how to achieve a turnaround in panel prices and when,” Wu said. “Trends in TV display panels that are shifting to larger sizes and heading to higher-end products can be the key to overcome the challenge.”Wu noted, however, that shipments dropped 10 percent in value due to continued erosion in panel price, which began in mid- 2017.

The Large Area Display Market Tracker by IHS Markit provides information about the entire range of large display panels shipped worldwide and regionally, including monthly and quarterly revenues and shipments by display area, application, size and aspect ratio for each supplier.

An international research team from Russia, France, and Germany has proposed a new method for orienting liquid crystals. It could be used to increase the viewing angle of liquid-crystal displays. The paper was published in the journal ACS Macro Letters.

“This is first and foremost a fundamental study exploring the mechanisms of liquid crystal orientation,” says Dimitri Ivanov, the head of the Laboratory of Functional Organic and Hybrid Materials at MIPT. “That said, we expect that these mechanisms might have applications in new LCD technology.”

Subpixel structure in a twisted nematic LCD. Credit: Lion_on_helium/MIPT Press Office

Subpixel structure in a twisted nematic LCD. Credit: Lion_on_helium/MIPT Press Office

Liquid crystals

Most solids are crystals. In a crystal, molecules or atoms form an ordered three-dimensional structure. Unlike solids, liquids lack this internal long-range order, but they can flow. Matter in a liquid-crystal state has properties that are intermediate between those of liquids and crystals: It possesses both the molecular order and the ability to flow. A liquid crystal can thus be viewed as an “ordered” liquid.

Not all materials can exhibit a liquid crystalline state, and the phase transition mechanisms may vary. Among other things, the molecules of an LC material have to be anisometric — that is, rod- or disk-shaped. Some compounds become LCs in a certain temperature range. These are called thermotropic. By contrast, lyotropic LCs adopt the liquid crystalline state when a solvent is added.

The properties of an LC material vary depending on the direction. For example, polarized light propagates in a liquid crystal at different speeds along different directions. Also, in an electric or magnetic field, the orientation of LCs can rapidly change. This phenomenon is known as the Fréedericksz transition. Thanks to the optical properties of LCs and their ability to be easily realigned, they are widely used in the electronic displays of TVs, computers, phones, and other devices.

Liquid-crystal displays

In an LCD, the image is generated by changing the intensity of light in each pixel via an electric field, which realigns liquid crystals. There are several LCD configurations, but the one most commonly used is based on twisted nematic LCs. These are rod-shaped thermotropic liquid crystals that can adopt a twisted configuration by using special aligning substrates. Applying an electric field to these LCs can untwist them. This reproducible and predictable response can be used to control light intensity.

Each pixel in a color LCD consists of three subpixels: red, green, and blue. By varying their intensities, any color can be displayed. A subpixel in a twisted nematic-based LCD (figure 1) consists of a light source, a color filter, two polarizers, and an LC cell between two glass plates with electrodes. If the liquid crystals were not there, no light would pass through the cell, because whatever light is let through by the vertical polarizer would be blocked by the horizontal polarizer before reaching the color filter. However, special substrates with groovy surfaces can be used to twist LCs in a spiral between two polarizers so as to turn the light precisely by the amount needed to pass through the second polarizer. The fully illuminated state of the subpixel is actually its “off” state. When voltage is applied, the liquid crystals untwist, changing the light polarization to a lesser degree. As a result, some of the light is blocked. Eventually, as some voltage no light can reach the color filter, and the subpixel goes dark.

One of the limitations of this technology is the viewing angle of a display: From a sideways perspective, the LCD will not render the colors accurately. This is due to the co-alignment of liquid crystals. The issue can be solved using multidomain displays, in which pixels belong to a number of domains, whose LC orientations are different. This means that at least some of the domains are always oriented in the right way. The international team of researchers led by Professor Dimitri Ivanov, who heads MIPT’s Laboratory of Functional Organic and Hybrid Materials, has proposed a brand new solution for multidomain display design.

Going orthogonal

The authors of the paper reported in this story worked with liquid-crystal polymers. These are substances composed of long molecules with chainlike repetitive structure. It turned out that a slight variation in the structure of polymers can drastically alter their orientation on the substrate. The polymers used in the study are poly(di-n-alkylsiloxanes), or PDAS. Each molecule is a chain containing alternating silicon and oxygen atoms. The silicon atoms in PDAS bear two symmetric hydrocarbon side chains (figure 2). The n in the name of the compound stands for the length of the side chains, which was varied between 2 and 6.

In the experiment, polymers from the PDAS family were deposited on a Teflon-rubbed aligning surface with a regular pattern of grooves. Generally, crystalline polymers are known to align on such substrates, but only when the lattice parameters of the substrate match those of the deposited polymer. The researchers examined the orientation of the liquid-crystal polymer chains relative to the direction of the grooves on the aligning surface. The side chain length n was increased in steps of just one methylene group (CH?) at a time.

It was found that, contrary to expectations, the liquid-crystal orientation varied depending on side-chain length. At n equal to 2, the needlelike polymer superstructures known as lamellae co-aligned with the Teflon grooves. Because lamellae are known to be perpendicular to the polymer chains, the researchers concluded that the polymer chains are perpendicular to the grooves on the substrate (figure 3, left). When n was increased to 3, the orientation of the lamellae changed by 90 degrees, making them perpendicular to the grooves. As a result, the LC polymer chains were now oriented parallel to the grooves (figure 3, right). At n equal to 4, no further change in orientation was observed. However, when the side-chain length was further increased to 5 and 6, the lamellae again co-aligned with the Teflon grooves.

The researchers have thus found that by merely adding one methylene group to the side chain of the polymer, they could switch the LC orientation, which is crucial for most applications of liquid crystals, including LCDs. According to the authors, the effect they discovered could be used to design LCDs with improved viewing angles. This could be achieved using a multidomain technology that works by orienting subpixels of one color in different directions. As a result, the pixels compensate one another when the display is viewed at an angle, improving color rendition. The researchers expect this technology to be considerably simpler and cheaper than other multidomain approaches that are currently used.

Engineering and physics researchers at North Carolina State University have developed a new technology for steering light that allows for more light input and greater efficiency – a development that holds promise for creating more immersive augmented-reality display systems.

At issue are diffraction gratings, which are used to manipulate light in everything from electronic displays to fiber-optic communication technologies.

“Until now, state-of-the-art diffraction gratings configured to steer visible light to large angles have had an angular acceptance range, or bandwidth, of about 20 degrees, meaning that the light source has to be directed into the grating within an arc of 20 degrees,” says Michael Escuti, a professor of electrical and computer engineering at NC State and corresponding author of a paper on the work. “We’ve developed a new grating that expands that window to 40 degrees, allowing light to enter the grating from a wider range of input angles.

“The practical effect of this – in augmented-reality displays, for example – would be that users would have a greater field of view; the experience would be more immersive,” says Escuti, who is also the chief science officer of ImagineOptix Corp., which funded the work and has licensed the technology.

The new grating is also significantly more efficient.

“In previous gratings in a comparable configuration, an average of 30 percent of the light input is being diffracted in the desired direction,” says Xiao Xiang, a Ph.D. student at NC State and lead author of the paper. “Our new grating diffracts about 75 percent of the light in the desired direction.”

This advance could also make fiber-optic networks more energy efficient, the researchers say.

The new grating achieves the advance in angular bandwidth by integrating two layers, which are superimposed in a way that allows their optical responses to work together. One layer contains molecules that are arranged at a “slant” that allows it to capture 20 degrees of angular bandwidth. The second layer is arranged at a different slant, which captures an adjacent 20 degrees of angular bandwidth.

The higher efficiency stems from a smoothly varying pattern in the orientation of the liquid crystal molecules in the grating. The pattern affects the phase of the light, which is the mechanism responsible for redirecting the light.

“The next step for this work is to take the advantages of these gratings and make a new generation of augmented-reality hardware,” Escuti says.

The paper, “Bragg polarization gratings for wide angular bandwidth and high efficiency at steep deflection angles,” is published in the journal Scientific Reports. The paper was co-authored by Jihwan Kim, a research assistant professor of electrical and computer engineering at NC State.

By Walt Custer, Custer Consulting Group

Global Manufacturing Growth has Slowed, but is Still Positive (Chart 1)

Most key countries/regions saw a slowdown in growth in March based on their respective Purchasing Managers Indices. And in one case – South Korea – manufacturing moved into contraction.

February 2018 March 2018
Japan 54.1 53.1
South Korea 50.3 49.1
Taiwan 56.0 55.3
China 51.6 51.0
Europe 58.6 56.6
USA 60.8 59.3

custer-1-424

PMI Points to More Modest Expansion (Chart 2)

The global Purchasing Managers Index is a timely and readily available leading indicator for both world semiconductor and semiconductor capital equipment shipments. PMI values greater than 50 indicate expanding manufacturing activity.  See www.markiteconomics.com for PMI values for all major countries.

 

Recent semiconductor equipment, semiconductor and PMI 3-month (3/12) world growth rates were:

SEMI Equipment +29% February
Semiconductors                +21% February
PMI (squared) +4% March

The PMI leading indicator now points to more modest but still positive growth ahead.

custer-2-424

Semiconductor Industry Still has Legs (Chart 3)

Another useful and timely leading indicator is a composite of monthly Taiwan Chip Foundry sales.  Taiwan-listed companies publish their revenues about 10 days after the month closes. Chart 3 compares the composite monthly revenues of 14 Taiwan listed foundries vs. global semiconductor sales. Due to Lunar New year shutdowns, February 2018 was weak but foundry sales rebounded in March. Chip demand appears to be holding!

custer-3-424

Originally published on the SEMI blog.

With demand growing for active matrix organic light-emitting diode (AMOLED) TV panels, shipments of overall AMOLED panels by area is forecast to more than quadruple to 22.4 million square meters by 2024 from 5.0 million square meters in 2017, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

Shipments of AMOLED TV panels had doubled to 1.6 million square meters in 2017 from about 800,000 square meters in 2016, resulting in total AMOLED panel shipments to grow more than 30 percent to 5.0 million square meters in 2017 from 3.8 million square meters in 2016. Share of TV panels in the total AMOLED panel shipments increased to 32 percent from 21 percent in 2016.

“Demand growth in AMOLED TV panels has accelerated since 2016 due to the increasing demand for wide color gamut TV,” said Jerry Kang, senior principal analyst of display research at IHS Markit. “Most TV brands have been promoting AMOLED TV as their super premium product, which has differentiated optical performance from LCD TV.”

While 10 global TV brands shipped OLED TVs in 2017, 15 are planning to launch them in 2018. TV brands are trying to expand share of OLED TVs in their portfolio to rebound their total TV revenues.

“In terms of unit shipments, the TV market has seen declines for three consecutive years since 2015,” Kang said. “Now, major TV brands are prioritizing their focus on revenues rather than just the growth in unit shipments, with the added value that AMOLED TV offering higher-resolution and wide color-gamut display.”

According to the AMOLED & Flexible Display Intelligence Service by IHS Markit, shipments of AMOLED TV panels will reach 12.5 million units by 2024. “Many panel makers are trying to develop various technology to manufacture OLED TV panels — not only with white OLED but also with ink-jet process or quantum-dot materials,” Kang said.

04.23.18_AMOLED_shipment_area_forecast

The AMOLED & Flexible Display Intelligence Service covers the latest market trend and forecast of AMOLED display industries (including shadow mask and  polyimide substrate), technology and capacity analysis, and panel suppliers’ business strategies by region.

Demand for panels – both thin-film transistor liquid crystal display (TFT LCD) and active-matrix organic light-emitting diode (AMOLED) – using oxide backplane technology doubled in 2017, in terms of area, compared to a year ago, according to a latest report from business information provider IHS Markit (Nasdaq: INFO). The market is forecast to grow 30 percent in 2018 to 5.3 billion square meters from 2017.

Oxide backplane technology offers the benefit of higher resolution while consuming lower power, which are better suited to IT consumer products that require high mobility. With Apple’s increasing adoption of oxide TFT LCD panels for its tablet and notebook products in 2017, the demand surged 98 percent in 2017 year on year. Area demand for OLED TV panels using the oxide backplane technology also increased by 106 percent during the same period, according to the latest Display long term demand forecast tracker by IHS Markit.

“Demand for oxide panels will continue to grow in 2018 as demand particularly for OLED TV, with 55 inch or larger screens, increases,” said Linda Lin, principal analyst of display research at IHS Markit. “Increasing demand from IT products and rising penetration of OLED panels to major applications will help growing demand for LCD and OLED panels using oxide backplane technology in 2018, respectively.”

04.18.18_Oxide_backplane_demand_in_OLED_and_LCD

Panels using oxide backplane technology are mainly supplied by Sharp and LG Display. While Sharp is focusing on the oxide backplane for TFT LCD for IT applications, LG Display is more targeting the oxide backplane for OLED panels for TVs. Both are planning to expand their oxide capacity in 2018.

Sharp’s Gen 6 fab in Kameyama, Japan, is solely dedicated to producing low temperature polysilicon (LTPS) panels. To grab more orders for the Apple iPad, the company is going to change 40 percent of its LTPS capacity to oxide at the end of 2018.

Its Gen 8 fab in Kameyama is also planning to gradually increase the oxide capacity beginning the first quarter of 2018, from 50 percent of its all capacity in the last quarter of 2017 to 75 percent by the end of 2018. On the other hand, oxide panel price would be a key point to increase Oxide panel’s market share and decide that Sharp can enlarge Oxide capacity continuously or not in the future.

LG Display also plans to increase oxide panel capacity to prepare for the OLED TV panel business in future. Its Gen 8.5 OLED fab in Guangzhou, China, plans to start mass production of oxide backplane using OLED panels in the second half of 2019, with a capacity of 60,000 units per month. In Paju of South Korea, the company is also working to build Gen 10.5 fabs for both a-Si and oxide backplane panels.

Flexible televisions, tablets and phones as well as ‘truly wearable’ smart tech are a step closer thanks to a nanoscale transistor created by researchers at The University of Manchester and Shandong University in China.

The international team has developed an ultrafast, nanoscale transistor – known as a thin film transistor, or TFT, – made out of an oxide semiconductor. The TFT is the first oxide-semiconductor based transistor that is capable of operating at a benchmark speed of 1 GHz. This could make the next generation electronic gadgets even faster, brighter and more flexible than ever before.

A TFT is a type of transistor usually used in a liquid crystal display (LCD). These can be found in most modern gadgets with LCD screens such as smart phones, tablets and high-definition televisions.

How do they work? LCD features a TFT behind each individual pixel and they act as individual switches that allow the pixels to change state rapidly, making them turn on and off much more quickly.

But most current TFTs are silicon-based which are opaque, rigid and expensive in comparison to the oxide semiconductor family of transistors which the team from the UK and China are developing. Whilst oxide TFTs will improve picture on LCD displays, it is their flexibility that is even more impressive.

Aimin Song, Professor of Nanoelectronics in the School of Electrical & Electronic Engineering, The University of Manchester, explains: “TVs can already be made extremely thin and bright. Our work may help make TV more mechanically flexible and even cheaper to produce.

“But, perhaps even more importantly, our GHz transistors may enable medium or even high performance flexible electronic circuits, such as truly wearable electronics. Wearable electronics requires flexibility and in many cases transparency, too. This would be the perfect application for our research.

“Plus, there is a trend in developing smart homes, smart hospitals and smart cities – in all of which oxide semiconductor TFTs will play a key role.”

Oxide-based technology has seen rapid development when compared to its silicon counterpart which is increasingly close to some fundamental limitations. Prof Song says there has been fast progress in oxide-semiconductors in recent years and extensive efforts have been made in order to improve the speed of oxide-semiconductor-based TFTs.

So much so some oxide-based technology has already started replacing amorphous silicon in some gadgets. Prof Song thinks these latest developments have brought commercialisation much closer.

He added: “To commercialise oxide-based electronics there is still a range of research and development that has to be carried out on materials, lithography, device design, testing, and last but not the least, large-area manufacturing. It took many decades for silicon technology to get this far, and oxides are progressing at a much faster pace.

“Making a high performance device, like our GHz IGZO transistor, is challenging because not only do materials need to be optimised, a range of issues regarding device design, fabrication and tests also have to be investigated. In 2015, we were able to demonstrate the fastest flexible diodes using oxide semiconductors, reaching 6.3 GHz, and it is still the world record to date. So we’re confident in oxide-semiconductor based technologies. ”

 

Although flexible active-matrix organic light-emitting diode (AMOLED) panel shipments for smartphones are expected to continue growing in 2018, the pace will be much slower than expected, according to a latest report from business information provider IHS Markit(Nasdaq: INFO).

With the adoption by Apple’s iPhone X, shipments of film-based, flexible AMOLED panels for smartphones more than tripled in 2017 to 125 million units from 40 million units in 2016, and it was expected to see continued strong growth in 2018. However, sales of the iPhone X have not met market expectations, mainly because of the $1,000-plus price tag, which is partially attributed by a more pricey display panel.

“The weak demand for the iPhone X has made smartphone brands revisit their AMOLED panel purchasing plans,” said Hiroshi Hayase, senior director at IHS Markit. Now, flexible AMOLED panel shipments for smartphones are expected to reach 167 million units in 2018, up 34 percent from 2017, much slower than the expected almost double growth.

Apple seems to reexamine the percentage of its iPhone models using AMOLED panels and those using low-temperature-poly-silicon (LTPS) thin-film transistor liquid crystal display (TFT LCD) panels for 2018. Major Chinese smartphone brands, such as Huawei, Oppo, Vivo and Xiaomi, also appear to continue applying LTPS TFT LCD panels instead of switching to AMOLED for their 2018 models, while Samsung Electronics plans to keep using flexible AMOLED panels for the Galaxy S9 this year.

As a result, demand for AMOLED smartphone panels by switching from TFT LCD panels is expected to slow down. According to the latest Smartphone Display Intelligent Service report by IHS Markit, shipments of total AMOLED panel shipments for smartphones are forecast to grow 14 percent to 453 million units in 2018, from 397 million units in 2017. Glass-based, rigid AMOLED panel shipments are expected to grow at a single digit pace to 285 million units in 2018.

On the other hand, as demand for high-resolution smartphone displays is increasing in the mid-to-high-end smartphone market, demand for LTPS TFT LCD panels is forecast to keep growing in 2018 to 785 million units, up 19 percent from 656 million units in 2017. Shipments of LTPS TFT LCD panels are expected to grow stronger than AMOLED panels in the mid-high-end smartphone panel market in 2018.

Shipments of amorphous silicon (a-Si) TFT LCD panels used for low-end smartphones and feature phones are forecast to reach 807 million units in 2018, down 16 percent form 965 million units in 2017, offsetting the growth in AMOLED and LTPS TFT LCD panel demand.

Total shipments of mobile phone displays, including both TFT LCD and AMOLED panels, are forecast to increase by 1 percent to 2.02 billion units in 2018 compared to the previous year.

“As AMOLED panels allow more options in terms of form factors, demand for AMOLED for smartphones will continue to grow. However, it will start to outpace LTPS TFT LCD only after 2020,” Hayase said. “In order to compete with LTPS TFT LCD, production cost of both rigid and flexible AMOLED panels still need to be slashed, to close the price gap with LTPS TFT LCD.”

Worldwide PC shipments totaled 61.7 million units in the first quarter of 2018, a 1.4 percent decline from the first quarter of 2017, according to preliminary results by Gartner, Inc. The PC market experienced a 14th consecutive quarter of decline, dating back to the second quarter of 2012.

Asia/Pacific and the U.S. experienced declining shipments, while other regions saw some minimal growth, but it was not enough to drive overall growth for the PC industry. In the first quarter of 2018, PC shipments in Asia/Pacific declined 3.9 percent compared with the same period last year, while shipments in the U.S. decreased 2.9 percent.

“The major contributor to the decline came from China, where unit shipments declined 5.7 percent year over year,” said Mikako Kitagawa, principal analyst at Gartner. “This was driven by China’s business market, where some state-owned and large enterprises postponed new purchases or upgrades, awaiting new policies and officials’ reassignments after the session of the National People’s Congress in early March.

“In the first quarter of 2018, there was some inventory carryover from the fourth quarter of 2017,” Ms. Kitagawa said. “At the same time, vendors were cautious in overstocking due to the upcoming release of new models in the second quarter of 2018 with Intel’s new eighth-generation core processors.”

The top three vendors — HP, Lenovo and Dell — accounted for 56.9 percent of global PC shipments in the first quarter of 2018, compared with 54.5 percent of shipments in the first quarter of 2017 (see Table 1). Dell experienced the strongest growth rate among the top six vendors worldwide, as its shipments increased 6.5 percent.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

HP Inc.

12,856

20.8

12,505

20.0

2.8

Lenovo

12,346

20.0

12,305

19.7

0.3

Dell

9,883

16.0

9,277

14.8

6.5

Apple

4,264

6.9

4,199

6.7

1.5

Asus

3,900

6.3

4,458

7.1

-12.5

Acer Group

3,828

6.2

4,189

6.7

-8.6

Others

14,609

23.7

15,637

25.0

6.6

Total

61,686

100.0

62,569

100.0

-1.4

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

HP Inc.’s worldwide PC shipments increased 2.8 percent in the first quarter of 2018 versus the same period last year. In EMEA, HP Inc. recorded double-digit growth in both desktop and mobile PCs. This was contrasted with a small decline in other regions. HP Inc. was adversely impacted by declining demand in the U.S., which generally accounts for one-third of its total shipments.

Lenovo’s global PC shipments remained flat in the first quarter of 2018. Lenovo achieved 6 percent growth in EMEA and double-digit shipment growth in Latin America. However, in Asia/Pacific (its largest market), PC shipments declined 4 percent.

After record holiday sales for consumer and gaming products in the fourth quarter of 2017, Dell continued to perform well in the first quarter of 2018. With double-digit shipment increases in EMEA, North America and Latin America, Dell grew in all regions except Asia/Pacific. Desktop and mobile PCs grew in equal measures, showing Dell’s strength in the business segment.

Rising ASPs

The average selling prices (ASPs) of PCs continue to rise. Acknowledging deceleration in the smartphone market, and uncertainty in PC replacement demand, component companies remain cautious about expanding their production capabilities. Therefore, persistent component shortages and a rising bill of materials continue to create an environment conductive to higher prices.

“In contrast to other DRAM-related price spikes, PC vendors are not reacting by reducing DRAM content. Rather they have passed the cost increase to consumers,” Ms. Kitagawa said. “With fewer people buying new machines, manufacturers need to get the highest profit margin from each sale. To do that, they are raising the selling points and focusing on customer experience or perception of value.”

Regional Overview

In the U.S., PC shipments totaled 11.8 million units in the first quarter of 2018, a 2.9 percent decrease from the first quarter of 2017. Dell moved into the No. 1 position in the U.S. based on shipments, as its market share increased to 29.1 percent. HP Inc. moved into the No. 2 position as its shipments declined 4.8 percent, and its market share totaled 28.4 percent in the first quarter of 2018 (see Table 2).

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

Dell

3,440

29.1

3,198

26.2

7.6

HP Inc.

3,363

28.4

3,532

29.0

-4.8

Lenovo

1,632

13.8

1,714

14.1

-4.8

Apple

1,491

12.6

1,484

12.2

0.5

Acer Group

321

2.7

429

3.5

-25.1

Others

1,586

13.4

1,836

15.1

-13.6

Total

11,833

100.0

12,193

100.0

-2.9

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

PC shipments in EMEA totaled 18.6 million units in the first quarter of 2018, a 1.7 percent increase year over year. Enterprise shipments increased as many Windows 10 projects that were put on hold in 2017 began to be implemented. The fast approach of the compliance deadline for the General Data Protection Regulation (GDPR) in Europe, as well as earlier reports of cybersecurity breaches, made security a strong priority in the hardware refresh cycle among enterprises. Eurasia continued to be a bright spot for EMEA, as several countries, such as Russia, Ukraine and Kazakhstan, saw strong demand in the first quarter of 2018.

PC shipments in Asia/Pacific totaled 21.9 million units in the first quarter of 2018, a 3.9 percent decline from the first quarter of 2017. As previously mentioned, the PC market in China drove the decline in Asia/Pacific. There is no significant sign of strong upgrading to the special version of Windows 10 from the Chinese government institutions. Consumer demand was weak as most buyers already took advantage of the aggressive promotions offered in the fourth quarter of 2017.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe.

 

What makes the Vivo X20 Plus UD smartphone so important is that it is the first smartphone to use Synaptics’ under-display fingerprint sensor, and it has the potential to bite into Apple’s face recognition technology, announced the Teardowns service of ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.

(PRNewsfoto/ABI Research)

(PRNewsfoto/ABI Research)

Traditional fingerprint sensors are either embedded under the home key on the front of the mobile phone or on the back of the phone. Placing the fingerprint sensor under the display on the front of the mobile phone should allow for a borderless display on three sides of the display. The top still requires room for the front camera, proximity sensor, and receiver, etc. However, Vivo did not take full advantage of the new fingerprint technology from Synaptics. Vivo retained a significant border below the display along the bottom of the phone.

“Vivo may have been cautious to fully commit to the new technology and left room to fall back to a traditional sensor below the display,” said Jim Mielke, ABI Research’s vice president of the Teardowns service. “The performance of this first implementation does warrant some caution as the sensor seemed less responsive and required increased pressure to unlock the phone.”

Smartphone manufacturers are continually trying to achieve the truly borderless phone, and currently there are only three ways to achieve and still maintain biometric security: fingerprint sensor on the back of the phone, fingerprint sensor under the display, and facial/retina-based recognition. Despite the non-optimal capabilities, the Vivo X20 Plus UD is well ahead of Apple’s face recognition technology.

“Face recognition on smartphones is five times easier to spoof than fingerprint recognition,” stated ABI Research Industry Analyst Dimitrios Pavlakis (“Executive Foresights: Did Apple Miss the Bus – The Display – Integrated Fingerprint Sensor Gives the Industry a Much-Needed Push“). “Despite the decision to forgo its trademark sapphire sensor in the iPhone X in favor of face recognition (FaceID,) Apple may be now forced to return to fingerprints in the next iPhone,” added Pavlakis.

Fingerprint sensors are increasingly becoming more relevant with a host of new banking, financial institution and payment service providers getting behind the technology.

Vivo, a 9-year-old company based in China, was smart to partner with California-based Synaptics, which has 30-plus years of experience in the “human interface revolution” by offering touch, display and biometrics products.

ABI Research’s Teardowns reports feature ultra-high-resolution imaging, pinpoint power measurements, detailed parts list with fully costed BOMs (bill of materials), block diagrams and x-rays. ABI Research performs the highest resolution imagery in the teardown industry, providing unprecedented competitive analysis on components, cost, and chip system functionality.