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Market Insight

[Display Dynamics] HannStar business outlook for 2016

March 01, 2016  | Subscribers Only

Linda Lin Linda Lin Principal Analyst, Display Outlook

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With only one special size of Gen 5 (1200 × 1300 mm), HannStar’s production volume has been smaller than other panel makers, but more flexible. HannStar freed itself of capacity burdens by getting rid of larger notebook and monitor display business and easily found a niche in high growth products that can be agilely adjusted based on market conditions. The company has been able to gain smartphone business since 2012 and began fighting for tablet and consumer electronic display business in 2013. As a result, HannStar showed good operation profit margins in 2013 and 2014.As the display market declines, LCD makers are facing difficulties. As demand declined, panel prices dropped significantly in the second half of 2015 and profit margins worsened. The chart below shows how profit margins dropped dramatically throughout 2015.

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