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Less business for Korean-based tablet panel makers?

LG and Samsung Electronics currently holds about 60 percent of the market for productions of panels for tablets, but that number may decrease soon as Apple may shift their display production away from South Korean-based firms.

A source familiar with the matter reported that Apple will likely starting using IGZO panels from Sharp for future iPads, and AUO in Taiwan for the upcoming 7.85-inch iPad mini.  The move to obtain panels elsewhere in Asia may mean that Sharp and AUO is offering to make the panels for less.  One can also speculate that the decaying relationship between Samsung and Apple may also has something to do with the move. 

Regardless of the reason, Apple’s move out of Korea means less business for two of Korea’s largest tech firm.  The iPad mini will be Apple’s budget slate, or at least that’s what many are thinking.  Therefore, there’s a high chance that the smaller iPad will develop a large following if Apple’s marketing department continues to do what it does best.

Analysts predict that global tablet users will reach 124 million by 2014, and Apple currently holds nearly 70 percent of the tablet market share.  Taiwan is a hotspot for PC OEMs, but the PC market is shrinking, hence, Apple’s move may give Taiwan the much needed boost in its tech sector. 

Google, Amazon, and Microsoft are also investing heavily in the tablet market, and Taiwan seems to be the popular destination for core tablet components.

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