Taiwan-based panel makers will together ship 61.57 million large-size (9-inch and above) panels during the third quarter of 2016, growing 5.5% on quarter and 5% on year, and accounting for 35.1% of the global total, according to Digitimes Research.30.8% of shipments will be panels used in TVs, 32.9% notebooks, 21.8% monitors, 11.9% 9-inch and above tablets and 2.6% other devices, Digitimes Research indicated.Innolux will ship 11.63 million TV panels, 9.84 million notebook panels, 5.93 million monitor panels and 1.69 million tablet panels. AU Optronics will ship 7.35 million TV panels, 10.4 million notebook panels, 7.234 million monitor panels and 2.61 tablet panels. Chunghwa Picture Tubes will ship 2.51 million tablet panels and HannStar Display will ship 120,000 monitor panels.

China-based vendors shipped 145.9 million smartphones globally in total during the second quarter of 2016, rising 13% on quarter and 22.9% on year and accounting for 44.1% of the global total, according to Digitimes Research.58.6 million smartphones were shipped in overseas markets, increasing 20.7% on quarter and 17.7% on year, Digitimes Research indicated.Huawei Technologies was the largest vendor accounting for 18.8% of shipments, followed by Oppo 11.5%, Vivo 9%, Xiaomi Technology 9%, TCL 5.3%, ZTE 5.3%, Lenovo 4.7%, GiONEE 4.5%, Meizu 2.5% and Coolpad 2.1%.Huawei accounted for 21.8% of overseas shipments, TCL 11.3%, ZTE 10.1%, Lenovo 8.2%, Oppo 6.0%, Xiaomi 3.8%, GiONEE 3.2% and Vivo 2.4%. In particular, overseas shipments took up 84.8% of TCL's total shipments, and the proportions were 75.7% for ZTE, 70.1% for Lenovo and 46.6% for Huawei.

White-box tablet shipments were down 15.3% from sequentially to reach only 13.8 million units in the second quarter because the quarter was a slow season for North America and Europe, while demand from emerging markets also remained weak due to economic downturns. In addition, component shortages and rising component quotes have caused some white-box ODMs to be unable to fulfill some orders and were forced to delay orders to the second half of the year.Orders for entry-level Wi-Fi-only tablets from mature markets such as Europe and North America were declining during the second quarter, while demand for tablets with phone functionality also decreased in emerging markets due to exchange rate fluctuations and weak economies, according to Digitimes Research's latest report on tablets.As for component supply, panels had the most serious shortages, while rising memory prices also impacted white-box players' gross margins, making white-box players less aggressive about shipping tablets. The component shortage issues will not be eased until the third quarter.In terms of product sizes, some white-box players turned their focuses from the 7-inch tablet market to the 8-inch one due to the fierce price competition in the 7-inch market. Tablets with 10-inch and above displays saw their shipment share rise to 28% in the second quarter mainly because demand for 2-in-1 devices has been rising.As for tablet APs, MediaTek's solutions faced strong competition from Spreadtrum's inexpensive 3G APs in the tablet with phone functionality sector. Intel already stopped developing mobile device-specific AP solutions, but increasing demand for Windows 2-in-1s will help offset the drop and maintain the shipment share of white-box players' Intel-based tablets.

Sony will reduce its equipment investment for CMOS image sensors to JPY70 billion (US$691.53 million) in fiscal 2016, while maintaining its sensor production capacity at 70,000 12-inch equivalent wafers a month during the fiscal year, according to Digitimes Research.Sony will also gear up efforts to increase penetration rates of its CMOS image sensors in the automobile, robot and medicare segments as its CMOS image sensor revenues are expected to stay flat at JPY960 billion-JPY1 trillion (US$9.48-9.87 billion) in fiscal 2016 as compared to a year earlier, Digitimes Research noted.The CAGR (compound annual growth rate) for applications of CMOS image sensors in the automobile, security controls and medicare is expect to reach over 27%, respectively, during the 2014-2020 period compared to a 4% for the handset sector, the largest outlet for Sony's image sensors currently. Additionally, Sony's share in the automobile CMOS image sensor market is also relatively low currently.Sony has enhanced its image sensing technology through acquisitions, including the adding of ToF (time-of-flight) and medical sensing technologies. The ToF sensing technology will enable Sony to develop related applications for the automobile, robot, security control, gesture recognition and reactive gaming industries.While the global medical sensor market is expected to reach only US$300 million in 2020, an estimated CAGR of 31% during the 2014-2020 period will make the sector viable for Sony. Sony Olympus Medical Solutions, a medical business joint venture between Olympus and Sony, have rolled out its 4K UHD surgical endoscopy systems for the medical industry. Sony aims to take up a 30% share of the global surgical endoscopy-use image sensor market by 2020.

Taiwan-based makers shipped 8.448 million LCD TVs in the second quarter of 2016, increasing 14.9% on quarter and 6.1% on year, according to Digitimes Research.71.9% of the shipments were on ODM/OEM basis and 28.1% OBM (own-brand manufacturing), Digitimes Research indicated. Ultra HD models took up 16.6% of the shipments.In terms of screen size, below 32-inch models accounted for 8.8% of shipments, 32-inch 24.5%, 39-inch 2.9%, 40/43-inch 29.5%, 46- to 49-inch 9.6%, 50- and above 24.7%.Among markets, North America accounted for 39.0% of the shipments, Asia 34.1%, Europe 20.9% and others 6.0%.TPV Technology was the largest maker shipping 4.5 million LCD TVs, followed by Foxconn Electronics with 1.95 million units, Amtran Technology with 900,000 units, Compal Electronics with 490,000 units and Wistron with 330,000 units.

Based on GSA (Global mobile Suppliers Association) statistics, there were 4,416 models of LTE-enabled mobile terminal devices cumulatively launched around the world as of the end of February, an addition of 1,770 models from a year earlier. 1,311 or 74.1% of the additions were smartphones, according to Digitimes Research.Smartphones accounted for 61.2% of the cumulatively launched 4,416 models, routers 18.5% and USB Dongles 4.7%, Digitimes Research indicated.Of the 1,311 smartphones launched in March 2015-February 2016, only 89 or 6.8% supported VoLTE (voice over LTE), reflecting a low proportion of LTE mobile telecom carriers for providing VoLTE services. As of the end of February 2016, 126 LTE telecom carriers had announced VoLTE services and 55 of them had begun VoLTE operations, taking up 11.1% of all mobile telecom carriers around the world.As 4G network coverage and the proportion of mobile communication subscribers using 4G has reached a certain high level, VoLTE is expected to take off during 2016-2017.

SoftBank's launch of Android-based Pepper service robots will encourage Android software developers to develop applications for Pepper, which in return will help ramp up Pepper's market size and its ecosystem, according to a Digitimes Research report on the latest market trends in Japan's digital home market for the second quarter of 2016.Meanwhile, Panasonic's announcement to close its LCD panel plant in Himeji, Japan will also have a significant impact on Japan's digital home market, said Digitimes Research. Panasonic will outsource flat panels used for its LCD TV production after the closure of Himeji plant, while focusing on development of high-end TV models,Panasonic aims to sustain its profit growth through the outsourcing policy and the focus on high-end models after it managed to generate operating profits in its LCD TV business for the first time in eight years in fiscal 2015 (April 2015-March 2016).For the upcoming Tokyo Olympic Games 2020, Panasonic will focus on marketing large-size, high-definition models, including CZ950-series OLED 4K TVs for markets in Europe and DX900/850 series 4K Ultra HD Premium TVs for the local market.Sony, which has exited from the robot market for 10 years, is expected to reenter following its announced equity investment in US-based startup, Cogitai. Sony is expected to launch new business models by integrating AI technologies and its hardware products and services, Digitimes Research asserted.

Taiwan-based makers shipped 269.249 million small- to medium-size TFT-LCD panels during the second quarter of 2016, slipping 0.5% on quarter and 6.3% on year, according to Digitimes Research.88.2% of shipments were a-Si TFT-LCD panels and 11.8% LTPS (low-temperature poly-Si) units, Digitimes Research indicated.In terms of application, handsets accounted for 72.4% of shipments, tablets 7.5%, automotive displays 6.0%, digital cameras 3.5% and GPS PNDs 3.0%.Chunghwa Picture Tubes (CPT) was the largest maker shipping 100.560 million units, followed by HannStar Display with 67.892 million units and Innolux with 55.024 million units. In the second quarter, CPT shut down a 4.5G factory while Innolux shifted part of the capacity at a 5G factory from small- to medium-size panels to notebook panels.Shipments in the third quarter are projected at 288.123 million units.

MediaTek should remain focused on enhancing its technology to better compete against rivals including Qualcomm, Spreadtrum and HiSilicon, and to explore new growth opportunities outside the China market, according to Digitimes Research. Becoming a technology leader in the competitive mobile-processor market could be difficult for MediaTek to achieve, but should be considered as an ultimate goal for the Taiwan-based company seeking its long-term growth, Digitimes Research said. MediaTek with its complete turnkey solutions and cost advantage has been successful in partnering with China-based handset makers. Nevertheless, the Taiwan-based firm is facing a growing threat from competitors particularly China-based players including Spreadtrum and HiSilicon, which have become more able to provide competitive turnkey solutions in the entry-level and mid-range segments, Digitimes Research indicated. While losing its advantage over its China-based rivals in the low- to mid-range segments, MediaTek is still facing strong competitiveness from Qualcomm in the high-end sector, Digitimes Research said. Qualcomm's new Snapdragon 820 has received positive feedback, and already attracted orders from Samsung, HTC, LG, Sony Mobile and Xiaomi. Despite the company's increased focus on high-end chips, low- and mid-range offerings still account for the majority of MediaTek's total mobile chip shipments, Digitimes Research noted. MediaTek's gross margin remains under downward pressure despite revenue growth. In other words, lowering prices to expand shipments and market share would not drive long-term growth. Besides, China continues to be MediaTek's biggest market. MediaTek is looking to expand its non-China-based customer portfolio, but efforts appear to have had only limited success, Digitimes Research observed. In addition, new orders from Samsung Electronics are unlikely to make a positive contribution to MediaTek's long-term business growth, Digitimes Research noted. MediaTek has reportedly shifted part of its processor orders to Samsung's foundry business in order to gain chipset orders for Samsung's mobile devices. Such a business model could bring more risks and uncertainty, Digitimes Research said.

Conventional touch panel makers, due to stagnant demand for smartphones and tablets and growing adoption of In-Cell and On-Cell touch solutions, have shifted from consumer electronics to industrial control and automotive display applications for better profitability, according to Digitimes Research.ITO film-based touch panel makers J Touch and Young Fast Optoelectronics have reduced production of touch panels used in consumer electronics and increased production of models used in industrial control and automotive displays, Digitimes Research indicated.Faced with increasing competition, makers of touch panels used in industrial control and automotive displays, mainly Transtouch Technology, Abon Touchsystems and Higgstec, have adopted ITO film to produce large-size, e.g. 65-inch, touch panels and are adding handwriting functions to increase competitiveness.In addition to touch panel makers, touch IC design houses, such as Elan Microelectronics and Goodix, have shifted to fingerprint recognition.