According to digitimes.com, suppliers of small- to medium-size LCD panels are becoming cool about sales growth in second quarter, as demand from the China handset market weakens.

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One example is Chunghwa Picture Tubes (CPT), which has lowered its shipment growth forecast to just 2.15 per cent for the small-size segment for the second quarter amid uncertainties in the handset market in China.

Prime View International (PVI) said demand in the second quarter has been sluggish, as its distributors for handset panels have been taking deliveries at a slower pace and has reported April sales dropping by as much as 25 per cent to US$25.22 million.

Giantplus Technology attributed its 10 per cent drop in April sales to weak demand from China-based clients amid macroeconomic controls implemented by the Chinese government and rising global interest rates. The company said sales from China dropped to 40 per cent in April from the previous 55 per cent.

Buoyed by new orders from Nokia, TPO Displays, compared to other small- to medium-size specialists, turned in a much better performance for April, during which sales dropped only 3 per cent.

But TPO says low seasonality will continue in the second quarter, with no sharp growth in sales expected.