Albany, NY (PRWEB) February 10, 2015 -- The research report discusses the current market scenario and its results on the future of the market for display IC in the world, with special focus on the Chinese display IC market.
The market study titled “Global and China Display IC Industry Report, 2014-2015” offers an informative report, having in-depth analysis of past performances, current trends, and future prospects of the display IC market in China and across the globe.
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The research report majorly focuses on the developmental trends of liquid-crystal display IC and touch IC. It offers analysis on the downstream markets for LCD IC and touch IC as well as on the respective industries. It also provides a study on ten LCD driver IC suppliers and thirteen touch IC suppliers, and peripheral operators.
The mobile phone market in China experienced its first decline in the past 15 years in 2014. A 21.9% rate of declination was registered in the cumulative shipment in China. The shipment of handsets within domestic brands has decreased by 23.3%. The smartphone shipment in China was valued at 389 million in 2014, which indicated China is still dominant in the global smartphone market, but this number signified an 8.2% drop on the 2013 numbers.
Tablet PC shipment dropped for three consecutive quarters. 4K television is the only segment that is inclining in current times. After witnessing the first replacement wave, where LCD replaced CRT, the television industry is facing the second tide of replacement. Larger screens, lesser prices and better high-resolution program sources are acting as catalysts in the television market.
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Touch IC witnessed a significant slowdown in 2014. The production of on-cell/in-cell was notably enhanced, while the rates degraded. For instance, touch IC ASP of FocalTech was NTD47.28, NTD27.98, and NTD18.15 in 2011, 2013, and in the third quarter of 2014, respectively. This trend represents a decline rate of 61.6 %.
It is a trend that on-cell/in-cell utilizes the arrangement of LCD driver IC and touch IC that needs increased costs but strengthens the performance and cuts down on the supply chain. In 2018, the market share of on-cell/in-cell is likely to exceed 65% of the overall display IC market in China and the world.
In order to maintain the customer base and for prompt opening of the display IC market while launching new products, touch IC suppliers have decreased rates to capture the market amidst a slow mobile phone market, resulting in the quick decrement in their gross margin. The trend will remain in effect in 2015, and ASP may drop by 20-30%.
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Small-time out-cell touch IC suppliers will feel difficulty in surviving independently in future, and hence, they may be purchased by LCD driver IC suppliers or be shut down. Touch IC suppliers must evade mobile phones and tablet PC markets, as the industrial control market and the automotive industry are better options for them.
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