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China-based panel suppliers including China Star Optoelectronics Technology (CSOT), BOE Technology, Everdisplay Optronics and Tianma, have resorted to price competition in order to win orders from smartphone vendors such as Huawei, Oppo, Vivo, Gionee, Xiaomi, Meizu, ZTE, Asustek Computer and HTC, according to sources from the upstream supply chain.
CSOT has recently cut its 5.5-inch Full HD smartphone panel price to a level similar to that of a 5-inch HD a-SI one and is hoping the strategy will help it expand its market share, the sources said.
Tianma also recently started offering promotional prices for its TFT LCD and AMOLED smartphone panels to fight for new orders, the sources said. Tianma’s new pricing strategy reportedly has earned the company AMOLED panel orders from Asustek, the sources revealed
With smartphone shipments starting to see weakening growth, competitions between smartphone vendors have grown fiercer, sending shockwaves upstream to their component suppliers.
The sources added that even if smartphone vendors decide not to source panels from China makers, their aggressive moves will still give the vendors advantages in price bargaining with their existing suppliers.
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