China telecom subsidy changes spur declines in smartphone display prices, says DisplaySearch

After hitting a peak in March and April of this year, smartphone demand in China decreased after China telecom carriers stopped providing subsidies to smartphone vendors. According to DisplaySearch, telecom carriers in China will gradually stop subsidizing smartphone sets directly and focus more on consumer call charges, which is expected to affect the current inventory of name brands. These effects will also accrue to upstream industries, adding to declining smartphone display average selling prices (ASPs)in the open market. The average price of a 5-inch 720HD (1280 by 720)in-plane switching (IPS) module was priced at US$25 in August 2013, but it has since dropped 44% to US$14 this past August 2014.



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via Yuichun