Core Viewpoint - The smartphone panel market is experiencing overall quarterly growth with increasing differentiation in technology routes as it enters Q4, driven by high demand for low-end panels and flagship models, while LTPS LCD and ROLED face demand pressure [1] Group 1: a-Si LCD - Demand for a-Si LCD panels is supported by its cost-effectiveness, making it a core choice for entry-level models and stable orders from the white-label market [2] - A slight price increase is expected in the Q4 a-Si LCD panel market in South China due to this demand resilience [2] Group 2: LTPS LCD - The LTPS LCD panel market is facing low supply and demand expectations, with mid-range models preferring a-Si LCD and high-end models shifting to OLED, leading to a shrinking application scenario [3] - Prices for LTPS LCD panels are expected to remain stable in Q4 due to the balance of supply and demand [3] Group 3: ROLED - ROLED panels are under pressure as brand models shift towards FOLED, resulting in a shrinking demand base [4] - Suppliers are adopting discount strategies to stimulate demand, which aligns with brands' cost control needs amid rising component prices [4] - However, this strategy may not reverse the overall decline, with price adjustments aimed at maintaining order volumes for domestic brands in the coming year [4] Group 4: FOLED - Q4 is traditionally a peak demand season for FOLED panels, particularly following the iPhone 17 series launch, which has increased Apple's stocking needs [5] - Domestic panel manufacturers are facing intense competition in new project tenders, leading to a contradiction of rising demand but increasing price competition [5] - FOLED panel prices are expected to remain under pressure in the short term despite potential cost reductions through technological iterations by leading manufacturers [5] Group 5: Tablet Panels - The fourth quarter typically sees high demand for tablet panels, but this year shows a trend of high demand in the first three quarters followed by a decline in Q4 due to demand being pulled forward [6] - Overall demand is lower than the same period last year, influenced by significant price increases in core components [6] Group 6: Supply Side Analysis - For a-Si LCD, the supply-demand environment is becoming looser, leading to a slight decline in panel prices due to reduced brand demand [7] - LTPS production lines are maintaining high operational levels supported by demand from the automotive panel sector, with prices remaining stable overall [7]

Core Insights - The global smartphone terminal market is experiencing stable demand, with brand competition focusing on pricing and channel strategies. However, market growth is shrinking due to increased inventory and strong cost-reduction demands from terminal brands [1][2]. Panel Demand Analysis - **a-Si LCD**: Demand remains high due to stable needs from white-label customers and the repair market, but price sensitivity in the low-end market leads to slight price reductions from suppliers [1]. - **LTPS LCD**: Both supply and demand are expected to remain low, with manufacturers shifting capacity to mid-size products, resulting in stable prices for LTPS LCD smartphone panels [1][4]. - **ROLED**: Prices for rigid OLED panels have slightly decreased, but demand has not significantly increased due to more brands shifting towards FOLED [2]. - **FOLED**: Demand is expected to grow in the third quarter, but intense competition during project bidding has led to a disconnect between demand growth and price reductions [2]. Tablet Panel Market - In the domestic market, tablet sales exceeded expectations during the "618" promotion, but demand is adjusting post-promotion, leading to reduced panel procurement by some brands. Ongoing tightening of national subsidies is further suppressing consumer purchasing intent [3]. - In North America, overall consumer demand remains weak despite cost transfers from supply chain shifts not yet impacting end prices [3]. Supply Side Overview - **a-Si LCD**: Demand related to tablets remains stable, with prices holding steady [4]. - **LTPS Production Lines**: Despite pressure on smartphone panel demand, strong demand for mid-size products keeps production lines operating at high utilization rates, maintaining stable prices [4].