Panel makers are continuing to face pressure from system vendors to reduce pricing for tablet panels, which is likely to produce mixed results for the panel makers in 2013, according to market observers.

　　The observers said that upstream component makers such as panel makers are seeing pressure from downstream vendors to reduce pricing as a means for the vendors to compete more in the market.

　　Currently, some brand tablets are now priced at US$129 while white-box units have dropped to as low as US$49. The vendors believe that aside from value-added features, pricing has become more of a concern as more players continue to enter the tablet market with low-cost solutions.

　　While tablet shipments are expected to increase on year to around 240-250 million units in 2013 according to some estimations, panel makers are having to push down pricing for their products in order to land orders, which means that they will not necessarily report increased profits as a result of increased shipments in 2013, the observers believe.

　　The panel makers are also seeing limited shipments for monitor and PC applications, but may be able to make up for limited profits in those segments through smartphone pane shipments, the observers added.

　　The observers also said that vendors are looking for more ways to decrease touch module costs, as they currently make up about 30-40% of tablet material costs.