Multimedia Devices

According to the latest financial results disclosed by BOE and ChinaStar, the Chinese panel makers moved from losses in 2012 to profitability in Q1'13. BOE's Q1'13 revenues reached RMB 8,059 million ($1.3 Billion), with RMB 400 million ($64 million) operating margin and net profit margin of 5%. The TCL group revealed that they made profit from their investment in ChinaStar, which had Q1'13 gross margin of 14%. According to TCL's statement, ChinaStar's Q1'13 revenues reached RMB 3,362 (US$542 million) and operating profits were RMB 352 million (US$57 million).

The market is estimated to be worth $2.7 billion in revenue during 2012 and is expected to reach $8.3 billion in 2018, growing at an estimated CAGR of 17.71% from 2013 to 2018. In terms of product, Wrist-wear accounted for the largest market revenue at $876.70 million, while neck-wear enjoyed the least market share as of 2012. For application segment, Consumer application sector accounted for the largest market revenue at $2,367.99 million, while enterprise and industrial application enjoyed the least market share with market revenue of $73.04 as of 2012. However, enterprise and industrial application is expected to grow at the highest CAGR of 21.14%, during the forecast period, 2013 to 2018. North America with U.S. accounting fort more than 80.00% of the market is the single largest market and is expected to continue its dominance during the forecast period as well. However, Asia Pacific with China, leading the way is likely to grow at the highest CAGR during the same time.

The gaming-optimized handheld (GOH) market category, typified by Nintendo's 3DS and Sony's PlayStation Vita, has recently been overshadowed by gaming-capable smartphones and tablets and this trend is likely to continue. This research shows, for example, that the number of paying smartphone and tablet gamers will surpass the number of paying GOH gamers worldwide in 2013 and rise at a rapid rate through 2017. The number of GOH bundles shipped, meanwhile, should fall at an average of nearly 7% per year over the next five years. The installed base of GOH's is being overwhelmed by smartphones and tablets that are used for (primarily casual) gaming. If there's a silver lining for devices like the 3DS and Vita it's that the GOH category should lead in a crucial metric through 2017: average revenue per user (ARPU). Total mobile/portable gaming revenue, including digital and packaged game software, GOH hardware bundles, and direct advertising revenue going to platform suppliers and game developers/publishers, is forecast to approach $23 billion in 2017. Android remains quite fragmented but the platform is on its way to becoming a massively popular gaming platform in Asia/Pacific in particular. In order for Nintendo's and Sony's gaming-optimized handhelds to remain ahead of smartphones and tablets on key metrics such as ARPU, these companies and their game card developer and publisher partners will have to redouble their efforts in a number of respects. Digital distribution has reached an inflection point in mobile and portable gaming, and future success will largely boil down to finding a unique balance of freemium business model excellence and that ability to deliver compelling social experiences.

The haptic technology market for touchscreen is expected to grow at a CAGR of 41% from 2013 to 2018 and reach $51.77 billion in 2018. Haptics creates multi modal experiences that improve the usability by engaging touch, sound, and sight. Haptics improve the usability by fully engaging the user's senses such as in a shooter game when a user selects a virtual button; he/she can sense the button due to the haptics and performs much better. The major driving factors for the haptic technology market are the growth of the Smartphone's and virtual interfaces. In the report, different Touchscreen technologies are discussed like capacitive touchscreens, resistive touchscreens, surface acoustic wave (SAW) touchscreens, optical imaging touchscreens, and others. Haptic technology is increasing in use for capacitive touchscreens. Haptic technology in touchscreens is based on two different types of sensing systems, namely Kinesthetic and tactile. Different types of actuators, electronic systems, and the software's required for a haptic system are also discussed in the report.

According to the latest Quarterly Worldwide FPD Shipment and Forecast Report, AMOLED revenues are expected to pass $11.3B in 2013, up from $6.9B in 2012. This is an important milestone in the growth of AMOLED production. However, as long as the AMOLED business model remains limited to a single source (Samsung Display) and customer (Samsung Mobile), its future growth is questionable. Without large scale investments and participation by several panel makers, it's hard to conclude that OLED can be a mainstream display technology that could replace TFT LCD. The big revenue growth in AMOLED primarily comes from mobile phones, especially the latest Samsung Galaxy S 4, which uses a 5" 1920×1080 (440 ppi) AMOLED panel, with an average selling price of over $65, including integrated (on-cell) touch. We forecast that over 52M 5" AMOLED smart phone panels will be shipped in 2013, accounting for over $3.2B in revenues. The revenue growth of AMOLED in 2013 is linked to the higher prices for AMOLED panels compared to other mobile phone panels like a-Si TFT LCD or LTPS.

The growth of touch-enabled mobile devices, such as smartphones and tablet PCs, will drive worldwide cover glass shipments to more than 1.5 billion in 2013 and more than 2.5 billion by 2017, according to the new Touch Panel Cover Glass Report.  Cover glass shipments increased 44% in 2012, with more than three-quarters of that growth coming from mobile phones.  In 2012, mobile phone cover glass shipments increased 40% Y/Y, accounting for 84% of total shipments.  Fueled by smartphone adoption, mobile phones are on track to remain the dominant driver for cover glass, with shipments forecast to reach more than 2 billion by 2017. However, with increasing global smartphone penetration, growth is expected to slow to 21% Y/Y in 2014.

The launch of the iPad mini in late 2012 has been seen as an acknowledgement by Apple that smaller size (7-9") tablet PCs would become a larger part of the market than larger sizes (9.7" or 10.1").  Key aspects are more attractive prices and the ability to hold the device in one hand rather than two. Data published in the latest Monthly TFT LCD Shipment Database indicate that in the first month of 2013, tablet PC panel shipments shifted dramatically toward smaller screen sizes.

The Touch Panel Transparent Conductive Film TCF market is $956 million in 2012. Markets are anticipated to reach $4.8 billion by 2019. ITO is an entrenched technology for displays manufacturing. Indium tin oxide (ITO) has been the transparent conductive film technology for touch screens. Newer technology will erode ITO and provide improved functionality as lower prices. Transparent conductive film supports electronic device usability. The advantage of transparent conductive film is that a very thin layer of material as a coating on a surface can provide touch screen capability. Transparent conductive film supports electronic device usability. Factors that influence commercial success in the wireless device and services market relate to usability above all: The designs of the iPhone are genius designs because of the usability they bring. Development of an integrated hardware, software and service platform to support multiple wireless network standards is an essential aspect of market participation.

We project that US consumer electronics spending will grow by about 5 % in US dollar terms in 2013 , with growth areas including Ultra-high HD TV sets, smartphones , Windows 8 tablets, ultrabooks, and smart TV sets, but question marks remain about the sustainability of consumption in the absence of strong wage growth.

The global market for multimedia chipsets was estimated to be worth $19.8 billion in 2012. At a compound annual growth rate (CAGR) of 6.9%, the market is expected to grow to $27.7 billion by 2017. This growth will be primarily driven by inventions and the developments of new multimedia technologies and a growing consumer base in Asia.