Omdia Reports 10% Decline in Small and Medium Display Shipments for 2Q25

LONDON — A recent analysis by Omdia, a leading market research firm, has revealed a significant decline in shipments of small and medium displays, anticipated to drop by 10% quarter-on-quarter (QoQ) and 6% year-on-year in the second quarter of 2025 (2Q25). This downturn is primarily attributed to inventory adjustments among manufacturers of small and medium display application devices, notably in the smartwatch and smartphone sectors.

During the first quarter of 2025 (1Q25), small and medium display shipments reached 1,048 million units, with Active Matrix OLED (AMOLED) panels accounting for 612 million units, representing a substantial 58% market share. The demand for these displays was fueled by proactive inventory build-up in response to previous tariff risks, leading manufacturers to secure ample panel inventories from the fourth quarter of 2024 through the first quarter of 2025. According to David Hsieh, Senior Director for Display Research at Omdia, "The small medium display market is traditionally seasonal with the strongest growth typically occurring in the second half of the year. However, the 10% QoQ decline in 2Q25 clearly demonstrates the unique impact of tariff risks and inventory adjustments."

The easing of tariff concerns in 2Q25 has prompted device makers to adopt a more cautious purchasing strategy, resulting in reduced shipments of displays. The anticipated decline in total shipments to 942 million units in 2Q25 underscores the ongoing adjustments manufacturers are making in response to fluctuating market conditions. In this context, AMOLED panels are expected to maintain their market share, with shipments projected at 551 million units, reflecting a persistent 58% market share.

The sharpest declines are expected in mobile phone displays, including those for OEM cell phones and smartwatches, which are forecasted to drop by 14% and 18% QoQ, respectively. Contrarily, amusement displays, notably those for new mobile game consoles, are projected to experience remarkable growth, surpassing 100% QoQ due to heightened demand following recent launches.

Historically, the small and medium display market has shown resilience, often rebounding in the latter half of the year. Industry experts anticipate a return to growth in 3Q25 as the marketplace diversifies beyond smartphones, encouraging the development of various devices and applications. Hsieh also noted that while AMOLED panels maintain a stable share, there is increasing pressure on LTPS TFT LCD manufacturers to sustain their businesses in the long term. "Shipments of a-Si TFT LCD panels for entry-level mobile phones have remained stable, prompting more Chinese LCD manufacturers to produce small medium a-Si TFT LCD panels in their Gen8.5 and Gen8.6 LCD fabs," he added.

As the small and medium display sector adjusts to these changes, the implications for manufacturers, consumers, and the global electronics market will be significant. With evolving consumer preferences and technological advancements, industry stakeholders are encouraged to remain adaptive and innovative to navigate these challenges effectively.