AUSTIN, TEXAS: Small/medium display average selling prices (ASPs) in Q307 for long-term contracted categories -- mobile phones, PDAs, automotive, and handheld games -- continued their downward Q/Q trend, although at a slower rate than in prior quarters, according to DisplaySearch.

Displays for other applications that are typically priced at the spot rate, like digital photo frames and portable DVD players, were up Q/Q, reflecting the growing trend away from bargain pricing of 7" and 8" displays.

Digital cameras, with ASPs that generate the lowest revenue/sqm, had Q/Q changes of 1-4 percent and are likely to be essentially flat in Q4. On a weighted average basis, ASPs were ¥1,052 (US$8.92), flat Q/Q, but down 16 percent Y/Y.

By technology, weighted ASPs for a-Si TFT LCDs and CSTN LCDs (which make up 50.1 percent of small/medium display shipments) were both down 7 percent Q/Q, and down 17 percent and 23 percent Y/Y, respectively. The rapid drop in CSTN display ASPs is a function of excess capacity brought about by losing the battle to a-Si TFT LCDs.

These results were revealed by DisplaySearch, the worldwide leader in display market research and consulting, in its Q4'07 Quarterly Small/Medium Pricing Report. The firm forecasts overall ASPs to be down 1 percent in Q4'07, but up 2 percent in Q1'08. On a Y/Y basis, ASP reductions are reaching bottom, with a 5 percent decline and 2 percent increase forecasted for Q4'07 and Q1'08, respectively.

According to Dale H. Maunu, DisplaySearch's Vice President: "Small/medium display makers are now in full production, with the Japanese makers moving to more profitable, high-resolution displays used in high-end mobile phones, PNDs, PDA phones and wide-view digital still cameras."