Digitimes Research remains conservative about the prospects for the period, with half-year shipments projected to reach 49.18 million units and whole-year shipments being revised downward to 88.69 million units.

In addition to strong potential video content demand in China, the market has developed rapidly due to government intervention and delays in establishing copyright protections.

In the second half of 2012, the market focus is on the iPhone 5, which uses in-cell touch screen technology. Due to the integration of display panels and touch panel functions, the high technological threshold will mean Taiwan touch panel makers are unable to enter the iPhone supply chain.