Since the first generation iPad launched in 2010, which was equipped with multi-touch panel display, Apple has successfully created a new product segment and made the PCT (Projected Capacitive Touch) technology one of the standard technologies adopted by tablet vendors, as evidenced by the 94% adoption rate. With more manufacturers entering the PCT panel industry and thereby driving down price, a growing number of private-brand vendors begin to adopt PCT panel on their products. Therefore, it is expected that the share of tablets equipped with a PCT panel will rise to 98% in 2012.

As Apple secures a large share of the total tablet market, the company becomes a key player to affect the touchscreen panel market share. The types of technologies used by Apple for its touchscreen panels often have patent dispute issues and high entry barriers such as technology and production capacity. Thus, Apple's tablet development strategy is essential as it has power to determine what types of touchscreen panel technologies will be used for more than half of the total tablets.

MIC observed that branded tablet vendors are facing pressure to lower product prices in 2012 as the global tablet competitions extend from high-end product segment to mid-range and value-line product segments. Besides, branded vendors have to pay a high license fee to Microsoft for using Windows 8 system, therefore having an urgent need to reduce hardware cost - in particular the touchscreen panel that makes up most of the manufacturing cost of a tablet.

With the entry of new players, the introduction of new platform and the emergence of low-priced panels, MIC predicts that the market share of non-Apple tablet devices will grow steadily with the market being divided into three segments by price point, including high-end, mid-range, and value-line. Meanwhile, with touchscreen technologies evolving continuously and developing towards maturity, tablet vendors have a wider range of touchscreen panels to choose from, therefore leading to changes in the adoption of tablet touchscreen solutions.

More information can be found in the following MIC report:

Global Tablet and Application Processor Development Trends, 2012 and Beyond

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About MIC

Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english