IHS BOOSTS TABLET PANEL SHIPMENT FORECAST FOR 2013

(The following is a reformatted version of a press release
issued by IHS and received via e-mail. The release was confirmed
by the sender.) 
IHS Boosts Tablet Panel Shipment Forecast as White-Box Products
Storm the Market 
El Segundo, Calif. (July 2, 2013)--Boosted by orders from
unbranded, white-box Chinese manufacturers, global demand for
tablet panels is exceeding expectations, spurring IHS to
increase its forecast for displays by 6 percent for 2013. 
A total of 262 million displays for tablets are forecast to be
shipped in 2013, compared to the previous forecast of 246
million, according to the May Edition of the “LCD Industry
Tracker--Tablet” report from information and analytics provider
IHS (NYSE: IHS). This will represent 69 percent growth from 155
million in 2012. 
“Competitive dynamics in the tablet market have changed
dramatically this year as Chinese white-box smartphone makers
have entered the tablet market in droves,” said Ricky Park,
senior manager for large-area displays at IHS. “These companies
are producing massive quantities of low-end tablets that appeal
to consumers in China and other developing economies. Because of
this, the white-box manufacturers are driving up demand for
tablet panels, particularly smaller displays using the older
twisted nematic (TN) technology, rather than the newer screens
using in-plane switching (IPS).” 
Unbranded tablet makers purchased 40 percent of all tablet
panels in April, up from just 17 percent in the first quarter of
2012. 
Partly because of the rise of white-box makers, shipments of
smaller 8- and 9-inch tablet displays will rise by nearly 200
percent in 2013. In contrast, larger displays in the 9-, 10- and
11-inch range will suffer a 5 percent decline. 
The boom in white-box tablets is being driven the introduction
of turnkey designs offered by processor makers. The designs make
it easy for new, inexperienced market entrants to offer tablet
products. 
The Chinese white-box manufacturers hold certain advantages over
the major incumbent tablet manufacturers. The white-box
manufacturers are able to produce tablets at lower cost, more
quickly and with greater flexibility in production. These
companies also have the capability to manufacture both unbranded
tablets, and make products for the major brands on a contract
manufacturing basis. 
Such white-box players also have been agile enough to take
advantage of the current high availability and low-cost of
tablet panels. Makers of displays for the shrinking PC market
have switched over to the tablet market, spurring a glut that
has depressed pricing. As prices have fallen, the white-box
makers have demonstrated enough flexibility to boost production
of low-cost tablets. 
“Playing to their strengths, the white-box manufacturers are set
to continue to increase their presence in tablets and propel the
expansion of the overall tablet market,” Park said. 
IHS believes the strong growth of tablet panel demand continued
in the second quarter. The arrival of more turnkey tablet design
solutions will drive up demand for 7- and 8-inch panels
throughout the year. 
The 8-inch panels are becoming an increasingly large segment of
the tablet market, with a display area more appealing to users
than the 7-inch size. In all, the 8-inch panels accounted for 11
percent of panel shipments in April, with Samsung and Acer
having recently launched new tablets in that size. With more
introductions likely coming in the third quarter, IHS expects a
substantial market share for the 8-inch by the end of this year. 
The market for larger-sized, 10-inch and bigger tablet panels
may begin to enjoy a recovery in shipments with the launch of
the new Intel Corp. Atom microprocessor, code-named Bay Trail.
This new device could help reduce the cost of x86
microprocessor-based tablets and improve battery life. Bay Trail
also could generate opportunities for hybrid-form tablets that
include keyboards. 
The x86 tablets, with Microsoft Corp.’s new Windows 8 operating
system, would have functionality better suited to the needs of
the commercial and business worlds than either the Google
Android- or the Apple iOS-based tablets, which are designed with
the consumer in mind. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
About IHS (www.ihs.com) 
IHS (NYSE: IHS) is the leading source of information, insight
and analytics in critical areas that shape today’s business
landscape. Businesses and governments in more than 165 countries
around the globe rely on the comprehensive content, expert
independent analysis and flexible delivery methods of IHS to
make high-impact decisions and develop strategies with speed and
confidence. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS is committed to
sustainable, profitable growth and employs 6,700 people in 31
countries around the world. 
(sgp) NY 
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