Doors open for new OLED technology

Rhee So-eui and Sinead Carew

SEOUL/NEW YORK: It consumes little power, gives superior picture quality and was touted as the future of all displays, but organic screen technology has been languishing in manufacturers' backrooms until now.

Active-matrix organic light-emitting diode (AM-OLED) displays are making a belated appearance in pricier smartphones as makers latch on to the technology to get an edge in a sector where competition is fierce and features matter more than price.

Samsung Electronics, the world's No.2 mobile phone maker and a main proponent of the technology, has eight models featuring organic screens and plans to roll out about 10 more by the year-end.

In the United States, its Impression model is sold via AT&T, and Sprint Nextel will also offer at least one Samsung phone using AM-OLED technology.

Global cellphone leader Nokia is offering AM-OLED in its N85 and N86 high-end models as it fends off smartphone rivals such as Research In Motion and Apple.

Fans of the technology say that while AM-OLED mobile phone screens are 50-80 percent more expensive than conventional LCD screens and their high price has kept them from mass-production, their time may have come.

"I think the economics of it are somewhat irrelevant," said Ben Wood, an analyst at wireless research firm CCS Insight. "It's a real differentiator. I predict you'll see AM-OLED devices from all the major manufacturers within 12 months from now."

But AM-OLED technology failed to catch on for a reason.

The screens are more expensive to produce, and supply is restricted to a few manufacturers, primarily Samsung Mobile Display, which has 97 percent share of the market.

"I've no doubt about (AM-OLED) growth over the long term. But whether all players would immediately follow the trend set by Samsung, I'm not sure," said Oh In-bum, an analyst at Dongbu Securities.

The appeal of AM-OLED technology lies in the thin layer of organic materials that allow screens to glow on their own, unlike liquid crystal display (LCD) panels, resulting in slimmer screens that use less power, boast faster response speed and have more vivid colours.

Samsung is the main proponent of a wider adoption of the technology, and forecasts 37.5 percent of all mobile phones sold in 2015 will have AM-OLED screens, up from 2.3 percent in 2009.

Samsung Mobile Display aims to sell 23 million units of AM-OLED displays this year, up from 7 million in 2008. Jeff Kim, an analyst at Hyundai Securities, expects Samsung's sales to reach 49 million next year.