Tablet display market gains from smaller-sized devices

According to the latest report from IHS, the rising demand for low-priced 7.x-in products helped shipments of panels used in media tablets to more than double in in Q1. Worldwide shipments of capacitive touch screen displays for media tablets amounted to 45.2 million units in Q1, representing a 111.9 per cent increase compared to the same period last year, more than doubling the 21.3 million total in 1Q12. While shipments were down 13 per cent compared to Q4, such a seasonal decline is typical for electronics in Q1, noted the market research company.

"Sales of smaller-sized tablets are rising at a rapid rate, driving shipments of capacitive touch screen displays ranking in size from 7-8in," said Duke Yi, senior manager for display components and materials research at IHS. "These tablets are inexpensive, with pricing at $199, making them popular among consumers. With the level of competition increasing in both the tablet and panel markets, pricing is expected to continue to decline, boosting shipments of displays and end products in this size range."

With the increasing number of panel makers, the average selling price (ASP) of tablet PC touch panel modules is falling at a fast rate. In 1Q13, average pricing of 7in tablet touch panels fell to $15.60, down a sharp 16 per cent from $18.60 in 1Q12. Pricing for 7in touch panels dropped by 7.5 per cent from $15.60 in Q4, the largest sequential percentage decrease of any size.

At the end of 1Q13, display supplier TPK achieved a 29 per cent market share in the tablet touch screen market because of its strong cadre of leading stable clients such as Apple, Amazon, Barnes & Noble, Microsoft and Asus—including the Nexus 7. This gave the company the leading position in the tablet touch panel market in terms of unit shipments.

The runner up was Iljin Display, the biggest supplier of tablet PC touch panels for Samsung Electronics, which accounted for 15.5 per cent of market shipments in 1Q13, up from 7.5 per cent in 1Q12, IHS stated.

GIS, the touch panel subsidiary of Foxconn Technology Group, is steadily increasing its supply of touch panels for Apple's iPad and iPad mini. At the same time, GIS is supplying 8.9in touch panels for the Amazon Kindle Fire HD.

On the strength of these deals, GIS in Q1 attained a 13.3 per cent share of shipments, up from 12.8 per cent in Q4, and just 7.5 per cent in 1Q12.

Wintek once held the second place in the market because it shared in supplying of touch displays for the Apple iPad with TPK. However, with the rise of GIS, Wintek's share has fallen. The company's market share plummeted to 8.5 per cent in 1Q13.

Meanwhile, China's O-Film quickly reacted to the low-priced 7in tablet PC touch market, resulting in the company making great strides quarter after quarter. The company at the end of 1Q13 arrived in Top 5 with an 8.5 per cent market share.

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