Panel makers: China white box handset market to still grow in 2008

In response to the conservative outlook held by Yeh Yu-Chou, chairman of Taiwan-based touch panel maker J-Touch, toward the white-box handset market in China for 2008, handset panel makers recently commented that touch panel makers are expanding their capacity too quickly and this is indeed a sign that there could be the risk of oversupply next year. However, the overall handset panel market in China will still grow during 2008, the panel makers predicted.

Panel makers pointed out that white-box handset shipments in China grew significantly to 150- 200 million units in 2007. Although the growth in 2008 is not going to be as large, it is unlikely the industry will see negative growth. However, the growth of international handset brands may affect white box growth in China, the panel makers indicated.

Although J-Touch is conservative about the China white-box handset market, the touch panel maker noted that overall demand from the industry will still be strong in the first half, although it admitted that demand in the second half may be uncertain.

Taiwan LCM maker Giantplus Technology commented that is it possible that panel makers may adjust their shipments starting in the first quarter as handset makers prepared too much inventory in the fourth quarter.

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