Published in Mobiles

Further signs of a touch screen slump

by on19 May 2015


Tablets and smartphones who wants them?

There are further signs that the boom in consumer mobiles is drying up.


According to Digitimes, heading into the second quarter of 2015, Taiwan touch panel makers have sudden got conservative outlooks and some are even predicting that their revenues will drop another 15-20 per cent.

he reason is that consumers don't want game changing tablets and despite the claim that they are moving over to phablets instead the smartphone market is still pretty pants.

While Taiwan's overall shipments are expected to grow in the second quarter, with makers expected to ship 41.579 million smartphone-use touch panels, increasing 23.5 per cent on quarter but decreasing 22.3 per cent on year. The 8.941 million tablet-use units, are up 7.2 per cent on quarter but down 15 per cent on year.

Tablet makers are hurting the most. Those who focus on the application such as TPK are expected to see a 15-20 per cent decline in revenues during the second quarter before rebounding in the second half of the year when product mixes are adjusted and new orders from customers arrive.

Young Fast Optoelectronics company chairman Pai Chih-chiang said that they were also having to face price competition and this will get worse.

Young Fast aims to reduce spending and cut costs in order to react to this trend, which arose largely due to competition from China. The company will also focus on developing larger-size products in addition to wearable solutions while increasing utilization rates, said Pai, adding it will lower its emphasis on consumer-based products.

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