Telecom operators in China will reportedly bump up subsidies to local consumers for large-size smartphone purchases in the second half of 2013.

　　Amid growing trends in China for larger-size smartphones, the operators are seeing weak sales of 3.5- and 4-inch units, with entry-level low-priced units taking the hardest hits, said Truly Opto-electronics general manager Jian-Hua Lee.

　　Lee said the operators are going to focus on releasing 4.7- and 5-inch units to help stimulate sales and will also provide subsidies for smartphones sized 4.5-, 4.7-, 5.3- and 5.5-inch in the second half, while smartphones sized 4-inch and below will see a decrease in subsidies.

　　The chairman also said there has been a significant change in consumer behavior in China from purchasing small-size smartphones throughout the first half of 2013 to increasing purchases of larger-size units in the second half.

　　Additionally, Chunghwa Picture Tubes (CPT) chairman Lin Shengchang said the operators' moves to focus on 4.5-inch and above size smartphones has caused panel makers such as CPT to see its smartphone panel shipment proportion change. As large-size smartphones become in more demand in the market, more than half of the proportion of the company's handset shipments have been for 4.5-inch and above size units, Lee said, adding that CPT is also producing 5.8-inch smartphone panels.

　　Amid changing demand for larger-size smartphones in the China market as well as in other markets, market observers believe that most panel makers will increase production of 5.5-inch smartphone panels in 2014, which are expected to have a resolution of 490ppi.