Taiwan makers' shipments of small- to medium-size panels slipped 0.4% in the second quarter of 2015 to 287 million due to shrinking orders for feature handsets, according to Digitimes Research.
Within the total shipments figure, handset panel shipments declined 7.6% on quarter due to weakening feature handset demand. Shipments of other applications grew to help rebound losses from the handset segment, with smartwatch panel shipments growing 38.4% on quarter to 16.28 million.
The makers are shifting their proportion of handset panels to smartphone applications and expect the move will help bump up shipments in the following quarter to 312 million, up 8.5% on year. The third-quarter shipment figure will also represent a 5.5% on-year decline but will come as a result of producing larger-size panels, therefore decreasing the amount of panels cut.
Innolux is expected to be the largest supplier of smartphone panels in Taiwan during the third quarter, with shipments growing 10.7% on quarter, followed by HannStar Display at 5% growth.
In terms of vehicle applications, Taiwan makers' shipments will grow 11.7% in the third quarter and then decline 3.9% sequentially in the fourth quarter, said Digitimes Research.