Laptop vendor customers have cut back on LCD panel orders from 1Q 2022 due to falling demand in the PC market and increasing inventory pressure. Even though tablet LCD panel demand is still up 2% quarter-over-quarter (QoQ) from 4Q 2021, its 60.8 million quarterly shipments are still 10 million below the 2020-2021 historical average, which represents weaker demand is starting in 2022.
Considering the traditionally slow selling season and the priority of inventory digestion, the forecast for 2022's new tablet model schedule is conservative. And even the starting schedule has been pushed back from 2Q 2022 (usually every year) to mid-2022 or Q3 2022.
LCD Panel demand for tablets in 2022 is expected to fall to 2020 levels
Tablet 1: Tablet LCD panel shipments and forecast
Note: LCD Panel shipments for 7-inch and larger tablets are expected to change in 2022.
Quarterly tablet shipments from 2Q 2022 to 4Q 2022 are only expected to reach 58 to 60 million units, which means demand from both branded and non-branded laptop customers are tend to be conservative. As a result, the forecast for tablet LCD panel shipments in 2022 has been lowered to 240 million units, representing a year-on-year (YoY) decrease of 14 percent from 2021. After three consecutive years of growth in 2019, shipments are expected to return to 2020 levels in 2022.
Samsung started production of the 10.51-inch panel on the 4Q 2021. Innolux Optronics and HannStar Display provided the LCD modules for the tablet which's an upgraded replacement for the 10.36-inch model. Samsung initially planned to add two suppliers BOE and HKC for the 10.51-inch tablet of the 1Q 2022, but plans are still pending.
Instead of choosing its two current suppliers, BOE and HannStar, Amazon chose HKC as its supplier for 8-inch display panels in May 2022. Therefore, the volume share of 8-inch panels will change from 2H 2022 after HKC's involvement. HKC is also about to begin mass production of a 10.1-inch panel for Amazon with the 3Q 2022.
Due to slowing demand, Lenovo finally launched a new 11-inch tablet in March 2022, instead of 4Q 2021. Innolux supplied the display panel for the 11-inch tablet. And Lenovo is looking for another panel supplier for its 2022 11-inch tablet and is currently in contact with HKC.Table 2: Current tablet model and panel suppliers in 2022
Explanation: Tablet plans could still change.
According to the major tablet brands' plans for new models in 2022, most of them plan to launch LTPS tablets with 11 inches and above, especially in sizes such as 11, 11.45 and 12.4 inches. Meanwhile, new models of 11inch and 11.2 inch tablets of OLED panels are in the works. In contrast to the constant stream of new tablets using LTPS and OLED panels, almost no manufacturers have any plans to introduce A-SI and oxide panels. Currently, the only products with A-SI panels on the market are the 10.6-inch models from Lenovo and Xiaomi.
Lenovo looks the most aggressive among the many manufacturers who are planning to launch new tablets in 2022. The new 2H 2022 will also focus on the 11 inch and above segment using OLED LTPS technology. Huawei and Xiaomi also plan to introduce new 11-inch and larger tablets in the 3Q22.
As demand has waned in the mid-to-low end of the market, all major tablet brands are trying to push the high-end segment in 2022. Therefore, a size of 11 inches and above, OLED/LTPS technology, 2.5K resolution, and stylus function will be the main features of the new 2H22 tablet. But most brands are also worried that high-end tablet sales will not be good this year if the macroeconomic downturn continues.
Table 3: New tablet models and panel suppliers for 2022
Post time: Aug-02-2022