Supply chain shipments for Xiaomi Technology's Mi4 were weaker-than-expected in the fourth quarter of 2014, while those for the company's previous Hongmi model remained steady.

Orders to supply chains for the Mi4 throughout the quarter until February 2015 have lagged, which coupled with an expected slowdown in the overall handset industry during the first quarter of 2015 has left supply chains rather pessimistic about orders for the device.

Supply chain sources commented that China's handset market cooled down over the fourth quarter, which coupled with weak demand in emerging markets also influenced orders for the Mi4.

The sources added that Xiaomi is also looking to fully shift to in-cell touch panels for use in high-end smartphones instead of one glass solutions (OGS), with most supply currently expected to come from Japan Display as the firm slashes pricing. LG Display is reportedly trying to negotiate for similar orders but has yet to strike a deal.

Pricing for 5-inch HD in-cell touch panels meanwhile have dropped to US$18 and may drop even more in 2015, the sources noted.