According to upstream providers of touch panels, developments in the processing of on-cell TFT LCD panels is allowing makers to reduce their costs, which has caught the attention of notebook vendors and may lead to an increased variety of touchscreen notebook offerings later this year.
Upstream panel makers have lowered their costs for producing on-cell TFT LCD panels by adopting more efficient production processes, such as single-layer patterning in order to save on photomask fees, Previously, makers used 4-5 layer patterning and touch module costs remained high as a result. Touch panel makers in China and Taiwan are now moving toward single-layer patterning for displays such as on-cell TFT LCD panels, which has consequently also eliminated the need for glass covers and related production costs.
Touch panel pricing has dropped to around US$1 per inch due to such trends, with China makers showing clear indications they are keen on pursuing such production measures in order to gain market share in the touch panel market. Consequently, price wars have been spurred between Taiwan makers and China makers.
Reduced touch panel pricing means that vendors now have access to solutions that could help them push touchscreen notebooks in addition to 2-in-1 units at competitive pricing. Until now, vendors have seen limited success from touch notebook sales due to the less-than-overwhelming performance on Windows and higher touch panel pricing, coupled with lagging momentum due to competition from tablets and smartphones.
However, vendors are more optimistic about reduced pricing for new units released in 2015 and also believe that touch embedded features for Windows 10 will help spur demand and revive the notebook market.
Most of the new units released are expected to be in the 14- to 15-inch range and vendors will also push 2-in-1 units in the 10- to 13-inch range segment.
