Shipments of Taiwanese small and medium-sized flat panels for the third quarter this year are expected to rise 4.2 percent from the second quarter, the smallest growth since the third quarter of 2005 on slowing global demand, Digitimes Research said.
In a report released on Wednesday, it said shipments for the July to September period are expected to reach 344.14 million units, up 5.4 percent from a year earlier.
Small and medium-sized flat panels are products of less than 10 inches that are mostly used in handheld devices such as cellphones.
The company said demand in the third quarter was likely to defy conventional wisdom that the quarter is the peak season because the global economy remains haunted by debt problems in the eurozone and a slowdown in the US, while fierce competition from China could drag down the growth in shipments.
It said shipments of small and medium-sized flat panels are expected to total 317.73 million units in the fourth quarter, down 7.7 percent from the third quarter and also down 4.4 percent from a year earlier amid weak global demand, the research firm said.
The quarter-on-quarter decline in the fourth quarter will be the steepest fall since the fourth quarter of 2008, while the year-on-year drop will be the first retreat since the first quarter of 2009, it said.
International smartphone makers are expected to serve as the major buyers of small and medium-sized panels from Taiwan, the report said, adding that sales of Chunghwa Picture Tubes Co Ltd (中華映管) to Samsung Mobile Display of South Korea are expected to rise.
Meanwhile, AU Optronics Corp (友達光電) and Chimei Innolux Corp (奇美電子), are expected to better serve multinational buyers, while Hannstar Display Corp (瀚宇彩晶) is faced with stiff competition from Chinese rivals.
Shipments from Taiwanese manufacturers are expected to rise 9.6 percent from last year to 1.30 billion units, the firm said.
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