Mobile Phone Panel Prices Diverge Amid Policy Shifts, Demand Fluctuations

In April, the demand for mobile phone panels experienced a short-term rebound, driven by the dual forces of government subsidies and mid-year promotional inventory needs. This trend is expected to continue into the second quarter, according to CINNO Research. Despite the overall price level remaining relatively stable, different types of mobile phone panels are showing divergent price trends.

Chief analyst Zhou Hua from CINNO Research noted that the market has been buoyed by the "national subsidy" policy and the inventory needs for the mid-year promotional season. However, the recent arbitrary changes in U.S. tariff policies have introduced significant uncertainty into the market, leading to widespread panic and a cautious wait-and-see attitude. This short-term impact is expected to continue, reshaping the export landscape to the U.S. and increasing cost pressures across the global supply chain.

In response to these challenges, mobile phone panel manufacturers must demonstrate heightened market sensitivity and strategic flexibility to navigate potential cost increases and shifts in market demand. For a-Si panels, the demand has increased with more projects coming online, leading to full capacity utilization in key production lines. In the southern China market, prices for mobile products have seen a slight increase to secure capacity, but the prices for panels and modules supplied to brands have not risen accordingly.

For LTPS panels, while demand in the mobile application sector remains weak, the growing demand for automotive panels has kept key production lines operating at full capacity. This balance between supply and demand has kept LTPS mobile panel prices stable. In the AMOLED sector, the shift towards flexible AMOLED by domestic mobile manufacturers has led to a contraction in demand for rigid AMOLED panels, resulting in a price drop of 0.5 USD. However, the demand for flexible AMOLED panels remains robust, with domestic panel factories maintaining high operating rates. Despite pressure from terminal manufacturers to lower prices, panel factories are aiming to keep prices stable to avoid losses.

Looking ahead, CINNO Research predicts that the price trends for a-Si panels in April and May 2025 are still uncertain. LTPS panel prices are expected to remain stable in the short term, while rigid AMOLED panel prices are projected to decrease by 0.5 USD. Flexible AMOLED panel prices are likely to remain stable in the near future.