China-based first-tier handset vendors have reportedly cut orders to Taiwan-based panel makers by 10-20% in the third quarter of 2013, according to industry sources.

　　The panel makers have become increasingly concerned about end market handset sales in the China market during the second half of the year, which comes after the vendors were putting in increased orders throughout June, the sources said.

　　Additionally, the panel makers are also seeing decreased orders from Japan-based handset vendors, which in addition to the other reduction is likely to affect the makers' performances in the second half unless orders pick up again, the sources believe.

　　However, the sources do expect orders to pick up in September in preparation for the October 1 holiday period in China.

　　small- to medium-size TFT LCD panel shipments reached 359 million units in second-quarter 2013, up 2.7% on quarter.