 Screen shortages keep many smartphones in short supply (Source: HTC)
Production will hit 30 million monthly with new facility
The
single largest cause for shortages with the most popular smartphones
on the market today is the fact that the screens needed for the
devices are in short supply. Screen shortages affect just about every
popular device on the market today include many of the high-end
devices from HTC.
Samsung Mobile Display is now committed to
boost its production capacity of screens designed specifically for
mobile devices. The current production capacity for screens is 3
million monthly at its manufacturing plant. A new manufacturing plant
is set to come online next July and will raise the production
capacity for 3-inch size screens to a much more robust 30
million each month.
Samsung Mobile Display VP Lee Woo-Jong
wrote in an email quoted by The
Wall Street Journal,
"We've put in a great deal of effort to move up mass
production."
Lee also stated that with the high demand
for screens that the AMOLED business is now profitable for Samsung
after years of heavy investment. The new production plant will cost
Samsung in the area of $2.1 billion to get running. Samsung built the
plan in Tang Jung, which is in the southern part of Seoul. The
primary product built at the plant will be the aforementioned 3-inch
mobile device screens.
Samsung Mobile Display provides screens
for a number of different companies including Samsung Electronics.
The shortages in screens have reportedly affected all phone makers
equally with Samsung Electronics getting no preferential treatment
for screens for devices like the Galaxy S.
HTC specifically
named screen shortages as the reason it could not meet the demand for
some of its high-end offerings like the EVO 4G and the Droid
Incredible. To help get more of the popular smartphones onto the
market HTC recently started using
both AMOLED and Super LCD screens in its smartphones.
HTC's
Martin Fichter said, "The display was definitely one of the
bigger issues that we needed to solve."
Samsung expects
the demand for its AMOLED screens to continue to grow with the
expectation that 700 million devices will be using AMOLED screens by
2015. That is a 35 times increase from the number of AMOLED-equipped
devices today.
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