China-based smartphone and tablet vendors Huawei Device, Lenovo and Xiaomi Technology have increased demand for panels and touch panels since the beginning of the third quarter of 2014, according to Taiwan-based supply chain makers.
AU Optronics (AUO), Wintek, O-Film and Laibao are some of the main upstream supply chain makers that will receive the orders as China handset vendors aim to release new units throughout the second half of the year.
China handset vendors are expected to expand their entry-level and mid-range product lines in order to extend their market share in China where high-end unit sales have been limited mostly to Samsung Electronics and Apple.
The vendors also aim to release a new wave of 4G units in hope to spur new orders in the China market where handset growth has been limited in 2014 so far.
The shipment growth was disappointing as demand for 4G units was generally sluggish, hampered by delays in launches of 4G processors and a limited number of price-friendly 4G handset models in the market.
The China market shipments will rise to 100 million units in the third quarter and 112.2 million units in the fourth as many China-based vendors will launch new 4G models, added Digitimes Research.