AMOLED displays are now cheaper to produce than LCD

AMOLED displays have become cheaper to make than LCD panels, according to a report by market research firm IHS. The details of the report have appeared on the Chinese website ETNews.

"Production costs of AMOLED and LTPS LCD in first quarter are $14.3 and $14.6 respectively based on 5-inch full HD smartphone. Although price of AMOLED ($17.1) was more expensive than price of LTPS LCD ($15.7) in fourth quarter of last year, now it is cheaper to produce AMOLED than LCD," says the news report on ETNews.

The report forecasts that with the production cost of AMOLED becoming similar or lower than the production cost of LTPS LCD, smartphone manufacturers are likely to start using AMOLED not only for premium smartphones but also for their less expensive models.

Dwelling on the reasons of the price drop, the report says that this may be due to high rate of operation, wider range of customers and end of depreciation of production lines.

AMOLED displays are thinner, brighter, better at energy efficiency and said to offer better colors and higher contrast than LCD displays.