iPhone spurs touch-screen market growth

By Suzanne Deffree, Managing Editor, News -- 3/13/2008

Global shipment revenue for leading touch-screen technologies will rise to $4.4 billion by 2012, up from $2.4 billion in 2006, according to recent research from iSuppli Corp
 
 “Catalyzed by Apple Inc’s iPhone, sales of touch screens using projected-capacitive technology are growing dramatically,” said Jennifer Colegrove, senior analyst for emerging displays at iSuppli, in a statement. “Projected-capacitive touch-screen technology is more durable and has better transmittance than the more commonly used resistive technology. More touch-screen manufacturers are developing and commercializing this type of screen. Furthermore, the average pricing gap between the capacitive and resistive display types is dwindling, making the technology more attractive.”

Noting a “flood” of competition, technologies, and OEM interest, the market research company credited the iPhone as proof that multi-touch technology can be portable and affordable. Since the 2007 launch of the iPhone, many providers of alternative touch-screen technologies have announced multi-touch capabilities, such as the optical imaging camera-based touch screens offered by NextWindow Ltd and IR Touch Systems Technology Co’s infrared touch screen, iSuppli said.

According to iSuppli, resistive is the most commonly used touch-screen technology in the marketplace, despite its poor durable and transmissivity.  The market research company credited resistive’s low price and responsiveness to both finger and stylus touch for its market lead over the seven remaining touch technologies: surface capacitive, projected capacitive, surface acoustic wave, infrared, bending wave, active digitizer, optical imaging.

However, iSuppli said that the resistive market is suffering a shortage of Indium Tin Oxide (ITO) film used to make the screens due to production expansions among several major manufacturers and limited numbers of ITO film suppliers. With several large manufacturers expanding capacity, other types of transparent conductive materials such as conductive polymer, carbon nanotube, and Antimony Tin Oxide (ATO) have an entry opportunity now, the firm said.

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Resistive is also losing its Midas touch when it comes to handsets. ISuppli reported that while resistive is still the dominant touch-screen technology for mobile phones, projected capacitive and infrared began to penetrate the wireless handset segment in 2007. Technological variations being commercialized on mobile phones in 2008 and 2009 include sensor-in-pixel or in-cell touch, bending wave from Elo/Tyco Electronics, and polymer waveguide from RPO Inc, iSuppli said.
 
Resistive will face further competition, as iSuppli said even more novel touch-screen approaches are coming to market to compete with the current eight.

“For the touch-screen market, with more than 100 suppliers, in excess of 300 OEM/integrators and a wealth of technological alternatives, fascinating times are ahead,” iSuppli said.


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