New 3G screen technology to raise handset prices

date: July 23, 2002

Handset manufacturers have reportedly entered into negotiations with 3G LCD panel vendors seeking to speed up introducing high-resolution colour screens, which could in turn stimulate slack demand for replacement handsets.

Analysts believe the move would lead to an increase in handset prices since only a few Japanese manufacturers like Sharp were in a position to mass-produce the technologically advanced screens, such as the new quarter-VGA screens with resolution of 240 x 320 pixels, four times their predecessors, and the ability to display 260,000 colours compared to 65,000.

Sharp is expected to mass produce its continuous grain silicon LCD displays by autumn this year, while Toshiba Matsushita Display Technology and Hitachi are looking to introduce a low-temperature polysilicon technology.

All three are said to be in touch with handset makers for spring 2003 models. According to some estimates the new screens could cost JPY5,000 (EUR42.75) each in large volume orders, a price that would be a 40 per cent increase over the present products and would reverse the present downward trend.

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