Competitive small screen manufacturers face integration pressure

Market research company ABI said that although the recent sales of small screen manufacturers, but almost unprofitable, may face increasing pressure of integration.

ABI said the small screen - for the rapid growth of mobile phone, PDA, portable audio and video game consoles, and car navigation systems and other products -- demand, attract many new companies entering the market, especially those who want to serve the mobile phone manufacturers manufacturers. This led to the current excess capacity, small display vendor profit margins.

ABI analyst Richard Seifert believes that the small screen market way to avoid completely commercialized, diversification of screen size, shape and size. In fact, each device uses a different size and shape of the display. But Seifert warned that this may soon change, because of the large suppliers decide standard design, to the weaker companies out of the market, and to benefit from economies of scale.

"For those investors must have a leading technology or a strong market position in the firm." Seifert representation. "These manufacturers include SHARP of Japan (Sharp), Samsung (Samsung), the Taiwan area or AU Optronics Laibao Technology (RiTdisplay). Investors may also be concerned about the potential for the acquisition of a promising enterprise."