Makers in China's handset supply chain have geared up efforts to win component orders from Xiaomi Technology, affecting rival suppliers in Taiwan and Japan, according to industry sources.
While sales of Xiaomi's high-end models have been slow recently, the vendor still managed to ship over 10 million smartphones in the second quarter of 2015, buoyed by strong demand for its entry-level Redmi series products, the sources noted.
Xiaomi is expected to be able to maintain its shipment momentum in the third and fourth quarters, with quarterly shipments to reach over 10 million units, the sources estimated.
Sales of Xiaomi's recently released Redmi Note 2, which features MediaTek's premium mobile processor Helio X10, have been strong, despite raging protests accusing the vendor of using of display products from Tianma Micro-electronics for the smartphone rather than from Sharp or AU Optronics (AUO) as it claims.
The use of Tianma's display products by Xiaomi indicates that China-based flat panel makers have ramped up their production capacity for LTPS TFT LCD panels for production of premium smartphones, and therefore have enhanced their competitiveness against Taiwan-based AUO and Innolux, or Japan-based Sharp and JDI, the sources commented.
