Samsung Electronics is shifting low-priced tablet touch panel orders away from China-based makers as they are running at full production capacity, according to industry sources.

　　The company is looking to increase sales of low-priced tablets in 2014 amid fluctuating sales of smartphones. Samsung has been looking to China for low-priced solutions but due to competition for the makers' production capacity, the company is now shifting orders to makers in Korea such as Iljin Display and Smart Mobile Application Company (SMAC) as well as makers in Taiwan, including EELY.

　　Most low-priced tablet touch panel production capacity for China makers such as O-Film are held by major customers in China and Taiwan, with some holding as much as 20-30%. O-Film also receives a number of orders from major international brands but they are limited due to the amount of production capacity the company currently has, said the sources.

　　The sources said O-Film is in the process of adjusting its product and customer strategy to meet further market demand in the future, adding that most Samsung demand is currently for GFF, G1F and GF SITO products.

　　Low-priced tablets in markets such as China are increasingly important for vendors' market share, particularly in order to compete with other vendors, and the trend is expected to continue throughout 2014, added market observers.

　　Vendors are expected to continue releasing new units throughout the first half of 2014, which will bring in steady orders for many touch panel makers despite the period traditionally being an off season, the observers added.