Panel makers are seeing orders increase for large-size, high-resolution smartphone panels as vendors in China and Korea continue to release new models.
The orders represent a turnaround as previous orders revolved around mid-range units. Supply chain sources indicated, however, that makers still have higher expectations for mid-range smartphones in 2014 but that high-end units are picking up momentum.
Samsung Electronics and Huawei Device are two of the largest vendors putting in orders to supply chains in order to further compete in the China market. International vendors are expected to have more of an advantage following the discontinuation of various smartphone subsidies from local telecom providers in China, according to market observers.
The sources also indicated the orders are mostly for smartphone panels sized 5- to 5.5-inch.
For 2014, the observers expect over 40% on-year growth for entry-level and mid-range smartphones.