Touch panel module specialists have seen customers delay shipments of their new products until the fourth quarter, signifying a particularly weak third quarter, according to industry sources.
General Interface Solution's (GIS) seasonal shipment pick-up will be delayed until the fourth quarter, primarily as a result of an extended period of time spent by its major US customer in inventory correction, the sources said. The touch panel module company reportedly counts 70–80% of its revenue from orders for Apple's notebook and tablet products.
Inventory adjustments, notably for the iPad, are dragging down GIS's shipments thus far in the third quarter, which may result in a substantial sequential decline in GIS's third-quarter revenue, the sources indicated.
GIS is expected to see its shipments pick up in the fourth quarter, as new 14- and 16-inch MacBook Pro models hit market shelves by the end of this year, according to market sources. GIS also will supply touch modules for a new 12.9-inch iPad series, which will further buoy its sales performance in the fourth quarter, the sources said.
Fellow company TPK has in recent years diversified its offerings and customer base, with the proportion of revenue derived from significant US customers falling to approximately 40%, according to industry sources. Customers' new tablet rollouts, as well as a steady rebound in notebook shipments, will fuel TPK's revenue growth in the fourth quarter of 2023, said the sources.
Article translated by Jessie Shen
