As the tablet market matures and growth slows, the dominance of market leaders Apple and Samsung is weakening. According to the latest NPD DisplaySearch Monthly Tablet PC Panel Shipment & Value Chain report, total tablet display shipments declined 10% on year in the first half of 2014, while combined tablet display shipments to Apple and Samsung fell 34%. While the two companies had a 42% share of tablet panel shipments in the first half of 2013, their combined share dropped to 29% in the first half of 2014.

"As the tablet PC category matures, Apple and Samsung are facing new growth challenges," said Brian Huh, senior analyst for small/medium displays for NPD DisplaySearch. "The tablet leaders have been dealing with an increase in large-screen smartphone sales, a slowdown in the consumer replacement cycle, and greater competition from white-box brands and other low-cost tablets."

Total tablet panel shipments to Apple were just 31 million in the first half of 2014, down 14% on year. During that same period, 14.7 million panels shipped to Samsung, down 29% on year

In the fourth quarter of 2013, Apple launched its new high-end iPad series, with the 7.9-inch iPad mini retina display and the 9.7-inch iPad air. Panel shipment levels were increased to satisfy new-product demand and year-end seasonality. However, since the beginning of this year, demand rapidly decreased, which forced LG Display, Samsung Display, Sharp, and AUO to ship fewer panels than previously planned.

Samsung also focused on the high-end tablet segment, led by the Galaxy Tab, Tab Pro, and Galaxy Note Pro devices; however, like Apple, panel shipment demand also decreased significantly in the first half of 2014. Samsung released new products, like the 8.4-inch, 10.1-inch, and 12.2-inch WQXGA (2,560 by 1,600) panels, in the first quarter of 2014; however, demand did not keep pace with previous market expectations. Furthermore, mid-level tablet PC panel shipments for Samsung's 7-inch, 8-inch, and 10.1-inch WXGA (1,280 by 800) products also declined, which caused JDI, Samsung Display, and BOE to reduce tablet PC panel production in 2014.