Taipei, Friday, July 25, 2014 05:22 (GMT+8)
partly cloudy
Taipei
27°C
Digitimes Research: Fierce price competition revives GG touch panel demand
Jason Yang, DIGITIMES Research, Taipei [Thursday 26 June 2014]

Generally, the touchscreen technology used in a tablet is related to the device's specifications: high-end models usually adopt cutting-edge technologies, first-tier brand vendors' mid-range/entry-level models mostly adopt GFF-based touch panels, and white-box products normally use lower-end technologies. The traditional GG technology has been mostly left to gradually disappear from the sector.

However, Digitimes Research has found that some Taiwan-based vendors have started looking back to GG-based touch panels for their entry-level tablets in order to keep up with the fierce price competition.

Although the relationship between the touchscreen technology and product specifications is not as firmed for handset products as for tablets, Digitimes Research also has found GG technology's shipment proportion has been rising for handset products recently.

Digitimes Research believes GG touch panels' revival is mainly due to its more friendly pricing thanks to excessive capacities and mature technology. Currently, a GG touch panel is about 20-25% cheaper than a mid-range GFF touch panel and its price is even lower than a GF1 touch panel.

Another advantage of the GG technology is its low failure rate compared to those of GFF and OGS technologies. Overseas orders have become an important source of income for entry-level smartphone and tablet players. The time and resources needed to handle defective products returned to China from overseas clients can be a heavy burden for both suppliers and clients. Compared to GFF-based touch panels' about 1-2% failure rate, GG-based touch panels' 0.5-1% rate can significantly reduce the chance of products being returned.

Acer's entry-level 7-inch and 7.85-inch tablets both tablets adopted GFF touch panels from Taiwan-based Shun On Electronic (SOE) in 2013. But amid fierce price competition, the two entry-level tablets will now change to GG touch panels from China-based Holitech.

As for handsets, China-based ZTE and TCL, both of which focus heavily on overseas markets, and China-based CoolPad, which has just entered overseas markets, have adopted GG touch panels for most of their overseas models. Such moves benefit their upstream panel suppliers such as Success Electronics, Shenzhen Laibao Hi-Technology and Holitech.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Topics: Page 2

Realtime news
  • Google to incorporate NFC functionality into Android

    Mobile + telecom | 7h 44min ago

  • TPCA urges Taiwan government to upgrade PCB industry

    Bits + chips | 7h 56min ago

  • TSMC to offer more wafer starts to MediaTek in 3Q14

    Bits + chips | 9h 52min ago

  • TPK sees 2Q14 gross margin drop sequentially

    Before Going to Press | 8h 32min ago

  • O-film Tech to acquire Shenzhen Temobi Science & Tech

    Before Going to Press | 8h 34min ago

  • PCB maker Apex completes capital expansion

    Before Going to Press | 8h 47min ago

  • Handset solution vendors may roll out 10-core CPUs in 2015

    Before Going to Press | 8h 58min ago

  • TPK posts 1H14 net EPS of NT$1.37

    Before Going to Press | 8h 58min ago

  • China market: Mainstream pricing for smart wireless routers stands at CNY100-200

    Before Going to Press | 8h 59min ago

  • More IC vendors to engage in merger or acquisition deals

    Before Going to Press | 9h 1min ago

  • Intel to launch Core M for use in notebook/tablet 2-in-1 models in 4Q14

    Before Going to Press | 9h 1min ago

  • Notebook thermal module makers eye business opportunities from electric vehicles

    Before Going to Press | 10h 10min ago

  • Career expects sales to peak in 4Q14

    Before Going to Press | 10h 11min ago

  • Acer sees booming sales of Chromebooks, says CEO

    Before Going to Press | 10h 19min ago

  • China PV module makers expected to ask Taiwan solar cell makers to offer incentives

    Before Going to Press | 10h 32min ago

  • LG launches cloud-based monitors

    Before Going to Press | 10h 33min ago

  • AUO able to produce 42- to 75-inch WCG curved Ultra HD TV panels

    Before Going to Press | 10h 35min ago

  • Touch Taiwan 2014 to take place in late August

    Before Going to Press | 10h 36min ago

  • Global Ultra HD TV penetration to reach at least 6-8% in 2014

    Before Going to Press | 10h 36min ago

  • Digitimes Research: Japan promoting service robots

    Before Going to Press | 10h 37min ago

  • Small- to medium-size China smartphone component makers under pressure of being forced out in 2H14

    Before Going to Press | 10h 38min ago

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan notebooks – 2Q 2014

TAIWAN ICT | Jul 23, 12:53

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped....

China smartphone market and industry – 1Q 2014

CHINA SMARTPHONE | May 15, 15:08

This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the...

Taiwan LCD monitors – 1Q 2014

TAIWAN FPD | May 13, 15:41

Monitor shipments from Taiwan makers declined in the first quarter of 2014 mainly due to seasonality. And both upstream LCD panel suppliers and downstream system vendors remain conservative about the monitor market in the second quarter.

MSI Global N750Ti TF 2GD5/OC
Media news email alerts
2014 global smartphone market forecast