In the China market, mobile telecom carriers have stopped subsidizing 3.5-inch smartphones and instead are looking to launch more 4-inch or above models, which are expected to become mainstream in the second half of 2013, according to supply chain sources.
Additionally, panel makers are putting less focus on 3.5-inch handset panel production and are likely to provide more 4-inch WVGA handset panels to the carriers to meet the mainstream demand in China as well as to bump up their operations in 2013, the sources said.
China-based handset vendors still have plans to push 3.5-inch smartphone sales in emerging markets within Africa, as well as in South America and South Asia.

3.5-inch smartphones expected to become less popular in China
Photo: Shihmin Fu, Digitimes, June 2013
Article translated by Alex Wolfgram