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AMOLED displays were first cheaper to manufacture than LCD

The cost of production of AMOLED displays for the first time in history were below the cost of production of the LCD panels, reports IHS Technology. According to analysts, the production of 5-inch Full-HD display in the first quarter of costs of $14.3 (AMOLED) and $14,6 (LTPS LCD) versus $17.1 to $15,7 respectively in the fourth quarter of last year.

The high cost of AMOLED panels was considered the main deterrent to the proliferation of smartphones with such displays. And that’s why AMOLED screens are mainly used in the top products, allowing positioning as one of the important advantages of such gadgets.

The LCD and AMOLED screens differ significantly from a technical point of view. The second best contrast ratio, black color is really black, lower power consumption, less thickness. LCD (if we are referring to IPS) have more natural color rendition, quite often, higher brightness and lower the production cost.

A sharp decline in the cost of AMOLED panels be cheaper than LCD screens, will certainly lead to an increase in market share of smartphones with such displays. And they will be installed not only in high-end products, but at a much more affordable gadgets.

Among the main reasons of sharp change of alignment of forces in the market analysts are calling the high speed production of screens, a wider range of customers interested in buying AMOLED displays, and depreciation of production lines. In IHS highlighted the largest player in the market, the company Samsung Display, significantly developing the production of small and medium-sized AMOLED panels in the second half of last year.

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Earlier it was reported that Apple made the decision to move the iPhone from LCD technology to OLED. Currently, the company allegedly decided on the suppliers of such screens. According to Korean publication ET News, Samsung Display and Apple entered into a contract for the supply of panels based on organic light emitting diodes (OLED). It is expected that the South Korean company will provide the partner with from 50 to 80 % of the product. For the remaining orders will compete LG Display, Japan Display and Sharp.

The first iPhone with OLED display can be iPhone 7, which will be released this fall.

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