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Digitimes Research: Fierce price competition revives GG touch panel demand
Jason Yang, DIGITIMES Research, Taipei [Thursday 26 June 2014]

Generally, the touchscreen technology used in a tablet is related to the device's specifications: high-end models usually adopt cutting-edge technologies, first-tier brand vendors' mid-range/entry-level models mostly adopt GFF-based touch panels, and white-box products normally use lower-end technologies. The traditional GG technology has been mostly left to gradually disappear from the sector.

However, Digitimes Research has found that some Taiwan-based vendors have started looking back to GG-based touch panels for their entry-level tablets in order to keep up with the fierce price competition.

Although the relationship between the touchscreen technology and product specifications is not as firmed for handset products as for tablets, Digitimes Research also has found GG technology's shipment proportion has been rising for handset products recently.

Digitimes Research believes GG touch panels' revival is mainly due to its more friendly pricing thanks to excessive capacities and mature technology. Currently, a GG touch panel is about 20-25% cheaper than a mid-range GFF touch panel and its price is even lower than a GF1 touch panel.

Another advantage of the GG technology is its low failure rate compared to those of GFF and OGS technologies. Overseas orders have become an important source of income for entry-level smartphone and tablet players. The time and resources needed to handle defective products returned to China from overseas clients can be a heavy burden for both suppliers and clients. Compared to GFF-based touch panels' about 1-2% failure rate, GG-based touch panels' 0.5-1% rate can significantly reduce the chance of products being returned.

Acer's entry-level 7-inch and 7.85-inch tablets both tablets adopted GFF touch panels from Taiwan-based Shun On Electronic (SOE) in 2013. But amid fierce price competition, the two entry-level tablets will now change to GG touch panels from China-based Holitech.

As for handsets, China-based ZTE and TCL, both of which focus heavily on overseas markets, and China-based CoolPad, which has just entered overseas markets, have adopted GG touch panels for most of their overseas models. Such moves benefit their upstream panel suppliers such as Success Electronics, Shenzhen Laibao Hi-Technology and Holitech.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

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