New 11-inch-and-above tablet panels with LTPS and OLED technologies to impact demand in 2H22

Suffering from sluggish demand in the PC end market and inventory burdens, tablet customers have been reducing their panel orders starting 1Q22. Even though there was still a 2% Quarter on Quarter (QoQ) increase from 4Q21, the 60.8 million unit quarterly shipment volume was actually 10 million units lower than the 2020–21 historical average, thus reflecting weaker demand starting in 2022. 

The forecast quarterly tablet shipments may only reach 58¬–60 million between 2Q22 and 4Q22, which suggests conservative demand from both brand and non-brand tablet customers. Therefore, the tablet panel shipment forecast in 2022 has been revised downward to 240 million units, down 14% year-over-year (YoY) from 2021. After three years of consecutive growth from 2019 onward, shipments in 2022 are expected to return to the shipment levels of 2020.

Tablet panel demand in 2022 is expected to decrease to 2020 levels

Notes: Forecast 7-inch-and-above tablet panel shipments in 2022 are subject to change.

Source: Omdia

Echoing weak demand, there are fewer tablet projects in 2022

Considering the traditionally slow sales season and the priority for inventory digestion, forecast plans for new tablet models seem conservative in 2022. Even kick-off schedules have been postponed from 2Q22 (the usual annual timeframe) to mid-2022 or 3Q22.

Samsung kicked off with a 10.51-inch tablet in 4Q21. Innolux Corporation and HannStar Display Corporation supplied the panels for this tablet. This was an upgraded replacement model for the 10.36-inch model. Samsung originally planned to add two panel suppliers, BOE Technology Group Co., Ltd. and HKC Display, for the 10.51-inch tablet in 1Q22, but the schedule is still pending. 

Instead of its current panel suppliers, BOE and HannStar, Amazon started to work with HKC Display for an 8-inch tablet panel in May 2022. Therefore, the allocated volume for 8-inch panels will change from 2H22, after HKC Display’s involvement. HKC Display is also targeting the mass production of 10.1-inch panels for Amazon from 3Q22.

Affected by slow demand, Lenovo finally released a new 11-inch tablet in March 2022, behind the original release scheduled for 4Q21. Innolux supplies the panel for this 11-inch tablet. Lenovo is seeking another tablet panel supplier for its 11-inch model in 2022 and is currently in extensive discussions with HKC Display.

Table 1: Existing tablet models and panel supplier plans in 2022

Based on tablet brands’ plans for new models in 2022, 11-inch-and-above LTPS tablet models are being planned, specifically in 11-inch, 11.45-inch, and 12.4-inch sizes. Meanwhile, new 11-inch and 11.2-inch OLED tablet models are also being planned. Compared with new tablet models adopting LTPS and OLED technologies, there are few or almost no new models with a-Si and oxide technologies being planned. For now, these are mainly 10.6-inch a-Si models from Lenovo and Xiaomi.

Lenovo seems to be the most aggressive among the tablet brands in planning new tablet models for 2022. Its new products in 2H22 also focus on the 11-inch-and-above segment based on OLED and LTPS technologies. Huawei and Xiaomi are also planning 11-inch-and-above new tablet projects from 3Q22.

Tablet brands are trying to leverage revenue from high-end products in 2022 because demand remains sluggish for the middle- to low-end market. Therefore, 11-inch-and-above sizes, OLED/LTPS technologies, 2.5K resolution, and pen functionality are key features for upcoming tablet models in 2H22. But most brands are also worried about the sales of high-end tablet models this year if the macroeconomic recession continues.

Table 2: New tablet models and panel supplier plans in 2022