BEIJING, June 7 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), says the revolutionary application of backlighting in mobile phones has encountered difficulties in China.
With the rise of mobile phone production centers in China, the transfer of the world mobile phone industry to the Chinese inland, the further improved TD industrial chain and the imminent commercialization of 3G in China, mobile phone production by local registered companies and joint ventures added up to 442,275,000 in 2006. Over 95% of those phones had full-color screens. In the meantime, full-color mobile phones moved towards bigger screens and higher resolutions.
Pushed by the rapid increase of mobile phone production, LED backlight market demands reached 1.62 billion Yuan, an increase of 36.8% over 2005. Due to the increasingly larger percentage of full-color mobile phones, white-light LEDs became the absolute hero of the backlight market. However, the backlight market has had some difficulties:
Fig. 1 Mobile Phone LED Demands and Growth in China in 2002-2006
http://www.ccidconsulting.com/upload/11560.jpg
Source: CCID Consulting, Feb., 2007
Few Changes in Brand Structure.
Manufacturers of LED backlighting have been increasing in China in the past couple of years. Though increases of secondary manufacturers tend to scratch some market shares, the relatively high-speed growth of mobile phone production ensures a relatively large demand for LED backlighting. As a result, new secondary manufacturers have not had much influence on the production of front-line backlight manufacturers. The LED backlight market in China is still dominated by Shianyih Electronics, Waichi Electronics, Pepnice Opto-Electronics and so on. With more entrants into the backlight market, greater pressure for lower prices has led to price wars, which will have a definite impact on the profitability of the companies.
Replacement products hardly challenge the dominant LED. As OLED features advantages such as self-lighting, with no need for backlighting, high contrast, thinness, wide angels, fast reaction speeds, a wider temperature scope, simple structures and efficient procedures, it is considered the most promising monitor following the LCD. And OLED mobile phone screens have always been regarded as the most significant application of OLED products, which may influence the development of LED backlight markets.
However, OLED did not perform well on the mobile phone screen market recently. This is mainly because small production caused high product costs, which could only be reduced through larger scales. At the same time, TFT-LCD manufacturers modified assembly lines to enhance production of medium- and small-sized products, resulting in rapid price reduction of TFT-LCD products. Currently, LCD screens are still the predominant mobile phone screen.
On the other hand, although white-light OLED panels serving as backlighting are well-received by manufacturers, there is no mature commercial production due to immature technology.
OLED's poor performance in mobile phone screens and the unreadiness of white-light OLED panel backlighting for official commercial applications makes LED the unshakable hero of the mobile phone backlight market.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
