Slumping Sales at Apple Touch Panel Partner Wintek Interpreted as Sign of In-Cell Adoption
Topeka Capital Markets analyst Brian White today issued a new research note highlighting a steep drop in sales at Wintek, Apple's long-time supply chain partner involved in production of display touch panels for iOS devices. According to the report, Wintek has experienced one of its steepest declines in shipments on record, but rather than suggesting that the decline is due to overall weakness in Apple products, White believes that it is evidence of Apple moving to in-cell touch sensing technology in its next-generation products.
This morning, Wintek reported consolidated June sales of NT$5.22 billion, down 33.6% MoM and much worse than the average MoM June sales increase of 1% over the past seven years. Based on our records, this appears to be the biggest MoM sales drop for Wintek since the later part of 2008 and one of the most significant drops we have on record (back to 2005). We would not overreact to the weakness at Wintek as it relates to Apple because we believe Wintek may be losing market share in key next generation Apple products and therefore ramping down certain programs.
White notes that Wintek was previously estimated as generating over 50% of total sales from Apple, but that its role in Apple's supply chain is slipping amid the transition to new technologies.
Rumors of a shift to in-cell technology, which would allow for thinner displays, surfaced in April with indications that it would benefit larger display manufacturers like Sony, Sharp, and Toshiba. Smaller players like Wintek that have specialized in the current on-cell touch panel implementations would likely see their roles reduced, and White believes that that impact is already being felt at Wintek.
KGI Securities analyst Ming-Chi Kuo issued a report in late April estimating that a shift from on-cell technology to in-cell technology could allow Apple to shave up to 0.5 mm from the thickness of the next-generation iPhone. Altogether, Kuo expects that Apple will seek to embrace thinner displays, thinner back cases made of metal instead of glass, and thinner batteries made possible by spreading out within a larger form factor as a way reduce the thickness of the iPhone by nearly 1.5 mm.
Related Stories
Monday November 29, 2021 7:38 am PST by
Sami FathiIn association with CIT as the financing partner, Apple has launched a new Mac Upgrade Program for small businesses and Apple business partners that allow companies to easily distribute and upgrade their fleets of MacBooks at an affordable price to all of their workers.
As outlined on CIT's website, shared by Max Weinbach, Apple Business Partners can distribute the 13-inch MacBook Pro,...
With Black Friday over, Cyber Monday 2021 is now in full swing and you can find many of the same sales as last week on Apple products like AirPods, Apple Pencil, and iPad Pro. In this article we're focusing on the best Cyber Monday discounts on Apple products like these and more.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we...
We've been tracking Apple product and accessory deals for Cyber Monday 2021 today, and now Woot is offering a solid discount on the previous generation 32GB Apple TV 4K. You can get this device in new condition for just $99.99 if you're an Amazon Prime member. Note that this sale will last for one day only.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a...
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2021 sales have now carried over into Cyber Monday as well. Right now we're tracking notable offers on the iPhone 13 and iPhone 13 Pro devices from AT&T, Verizon, and T-Mobile. For even more savings, keep an eye on older models like iPhone SE.
Note: MacRumors is an affiliate...
We started sharing deals on Apple products for Cyber Monday 2021 earlier today, and now we're tracking deals and bargains available from all of the best Apple accessory companies. Similar to Black Friday, you can expect Cyber Monday savings from Twelve South, Nomad, Belkin, Casetify, and many more.
Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and...
Apple plans to release a third-generation iPhone SE in the first quarter of 2022, according to Taiwanese research firm TrendForce. If this timeframe proves to be accurate, we can expect the device to be released by the end of March.
As previously rumored, TrendForce said the new iPhone SE will remain a mid-range smartphone with added support for 5G:In terms of product development, Apple is...
Top Rated Comments
The closer you can get the screen to the surface of the glass the better it looks and feels when interacting with it. You feel like you are actually touching the screen. There were simliar improvements from the iPhone 3GS to 4, and recently the MBP Retina.
Maybe we should reserve judgement on that until we actually SEE the next iPhone, which by the way, Steve Jobs himself worked on up until almost the day he died.
Also, everyone is bitching up a blue streak about a .6 mm difference in thickness on the new iPad, so I would assume .5 mm difference in thickness will be a big deal to people. Don't ask me why.
It's because Apple orders these parts long before they are assembled then sold.
A bit of reduction in several areas adds up. That can mean a thinner device or more room for a larger battery. The latter sounds best to me, but I'll take either.