According to a research note, the mobile phone panel market continues to face weak demand as the second quarter draws to a close. The key cost driver throughout this industry cycle has been the increase in memory chip prices. In the absence of a fundamental improvement in supply and demand dynamics, this upward cost pressure is unlikely to reverse in the short term.
The research firm forecasts that a-Si module prices will remain stable in the short term for June and July 2026. LTPS panel prices are expected to be stable with a slight downward bias. Rigid AMOLED panel prices are predicted to continue falling in June before stabilizing from July onwards. Flexible AMOLED panel prices are anticipated to decline further in the third quarter.
The analysis indicates that despite significant price cuts by device makers during major promotional events, these efforts have been insufficient to reverse the overall market downturn. Fundamentally, rising memory chip prices have become the central factor driving up costs across the industry cycle. The continuous increase in prices for upstream raw materials, such as memory and core components, has directly elevated the hardware costs of complete mobile phones. With the supply-demand imbalance yet to be fundamentally resolved, this cost pressure is difficult to fully counteract in the near term, leading to continued price declines for panels across all technology types.
Regarding a-Si panels: Demand from brand manufacturers has notably recovered compared to the first quarter, and panel procurement demand from the repair market has also grown significantly. The utilization rates of major production lines remain high. Due to price increases for materials like ICs and FPCs, cost pressure is gradually being passed on to the module manufacturing stage. However, as the market remains buyer-favored, device makers tend to expect module manufacturers to absorb these cost increases themselves. The ongoing negotiation between the two parties is expected to keep prices stable in the short term.
Regarding LTPS panels: Benefiting from robust demand in automotive displays and order pull from new notebook and tablet model iterations, overall LTPS production line utilization remains elevated. Prices for older mobile phone projects remain relatively firm. However, to sustain production line utilization, prices for newly mass-produced projects will continue to decline. Overall, LTPS mobile phone panel prices are showing structural divergence, with a forecast of stable-to-slightly-lower prices in June.
Regarding AMOLED panels: For rigid AMOLED panels, major supplier Samsung Display (SDC) has not seen a significant boost in shipments despite previous price cuts, and prices are expected to continue declining in June before stabilizing from July. For flexible AMOLED panels, demand from device makers has contracted significantly due to the sharp rise in memory chip prices. Panel manufacturers' utilization rates are generally under pressure. To secure project share, panel makers continue to offer concessions during price negotiations, leading to intense competition. Flexible AMOLED prices are predicted to drop further in the third quarter, although June prices are expected to remain largely stable.
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