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The Impact of Chinese Smartphones Low-Price Trend on Small and Medium Area Panel Industry

The Impact of Chinese Smartphones' Low-Price Trend on Small and Medium Area Panel Industry

The knockout success of Xiaomi phones in 2014 coupled with the reduced subsidies from telecom operators for smartphone buyers as result of the government's adjustments to tax policy have both significantly affected decisions of Chinese smartphone vendors when it comes to product planning and high C/P ratio marketing strategy. As a result, vendors have been rushing into launching sub-brands for their e-commerce platforms. Those sub-brands either feature same specs at lower prices, higher specs at similar prices or higher specs at lower prices, compared to their major branded products. Other than squeezing margins that have resulted from the increasing adoption of high-end panels for smartphones, the continued low-price trend remains a worry for panel makers. This report examines the impact of this low price trend on the display panel industry, especially small and medium panel sector.


  • DEVELOPMENT OF THE CHINESE SMARTPHONE MARKET
    • Sub-brands for e-Commerce Exert Downward Price Pressure
    • Resolution of Smartphones Entering the Stagnation Phase
      • Table Benchmarking Chinese Smartphone Display Sizes and Resolutions
    • Smartphone Ecosystem Smartens Up with Cross-platform Cooperation
      • Table Online Retailers' Smartphone Manufacturing Business Deployment
  • IMPACTS ON PANEL MAKERS
    • Panel Makers Aim for Order Placement at the Cost of Profit Margins
    • LTPS Expansion Depends Highly on Chinese Panel Manufacturing Yields
    • Adjustments to Product and Customer Mix
  • CONCLUSION
    • e-Commerce Retailors Gearing Up for Smartphone Manufacturing
    • More Investments Needed for Technology R&D amid the Low-price Trend
  • APPENDIX
    • Glossary of Terms
    • List of Companies

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