Touch Screen Shipments 1 Billion Pieces in 2008 Production Value of 8 Billion US Dollars

In the next three years, the demand for touch screens will continue to grow at a high rate, while the high-growth trend of small-size touch screens has been determined, and touch-enabled mobile phones are the main driving force. It is estimated that in 2012, the total touch screen shipments (excluding the Shanzhai market) will be more than one billion, and the market capacity will increase from US$3.6 billion in 2008 to approximately US$8 billion. At the same time, the fast-developing Shanzhai market will provide a greater imagination space for touch screen demand.

The distribution of the touch screen industry chain is pyramidal, with a high degree of specialization of upstream raw materials and high technical barriers. Currently, it is dominated by well-known companies in the United States and Japan; the concentration of processing links in the middle reaches is the second highest; and the concentration of production in the downstream modules is the lowest. Combining the judgment of the development trend of the touch screen market, we believe that at this point in time, the module manufacturers with the first-mover advantage are just in time for the best opportunity for market demand growth and are expected to maintain certain advantages in the future competition.

According to iSuppli's estimation, in 2009 China's Shanzhai handset shipments surged 43.6% from the 101 million in 2008 to 145 million units, which is equivalent to 13% of the global legal mobile phone market. iSuppli expects that the Chinese Shanzhai mobile phone market may peak in 2012, when shipments will reach nearly 200 million units. The CAGR of the copycat mobile phone market in 2008-2013 was 11.7%, while the CAGR of the authentic mobile phone market was only 4.4% over the same period.

Touch-control mobile phones are currently hotspots for small-size touch screens. In the latest research report of March, researcher Gatet pointed out that in 2010, touch-enabled mobile phone shipments will reach 360 million units. It is estimated that by 2013, touch-enabled mobile phones will be The proportion of global mobile phone shipments will reach 58%. With 2012 global mobile phone shipments of 1.4 billion units and touch phone penetration rate of 40%, we estimate that in 2012, touch screen shipments for mobile phones (without considering the Shanzhai market) will be approximately 560 million units, and mobile phone touch screens will use 2009-2012 CAGR. It is 37%. We expect that the proportion of touch screen shipments for mobile phones in total touch screen shipments in 2012 will increase from 46% in 2009 to 56%. In 2012, the total global touch screen shipments in the legal market will be around 1 billion.

Mid-size touch screens are moving from the commercial field to the consumer electronics field. Prior to the introduction of the iPad, the medium and large-sized touch screens were mainly used in commercial/public areas such as ATMs, POS, and KIOSK, and mainly used resistive, sonic, and infrared technologies that were not suitable for portable consumer electronics. We believe that the iPad is a medium-sized one. Size touch screens are moving from the commercial space to iconic products in the consumer electronics field. If the iPad's function is positioned as a simple split, we have reason to believe that mid-to-large-sized touch screen applications in the fields of e-books, tablet notebooks, game consoles, and digital photo frames will likely have rapid growth in the coming years.