Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

Asia is becoming more important for Taiwan's LCD TV makers. Asia's share of their shipments has increased to a level comparable to that for North America.

The LCD monitor market has yet to hit bottom, with Taiwan makers expected to see their shipments continue to fall in the first quarter of 2017.

Digitimes Research estimates overall fourth-quarter 2016 shipments from China-based smartphone firms were 181.8 million units with an on-quarter increase of 4.4% and an on-year increase of 12.8%.

The fourth quarter is usually the low season for the small- to medium-size LCD panel industry, but significant demand for feature phone applications boosted Taiwan's shipments in fourth-quarter 2016.

The notebook market has been showing signs of recovery, with Taiwan makers seeing their first on-year shipment growth since first-quarter 2012 in fourth-quarter 2016.

Taiwan-based makers' large-size LCD panel shipments dropped 2.3% in 2016, worse than the average global decline of 1.1%, due to competition from China makers. Challenges from China competitors have been growing.

Taiwan's handset ODMs all saw significant decreases in their shipments in the fourth quarter of 2015, as clients reduced orders. Its handset brand vendors saw better results, but the increases in their shipments were hardly enough to offset the ODMs' poor results.

Shipments volumes from certain US brands were higher than expected during the fourth quarter of 2015, which drove global tablet shipments in the fourth quarter to 65.34 million units.

Looking forward to the first quarter of 2016, with both China-based makers and international brands aggressively spreading out their new products including all low, mid, and high cost models on the market in the fourth quarter of 2015, the market will have to digest some of the accumulated inventory in the first quarter.

China's smartphone AP shipments grew 16.1% sequentially in the fourth quarter of 2015 mainly thanks to demand for inventory preparation from some vendors and year-end holidays.

Taiwan's LCD TV shipments reached 10.24 million units in the fourth quarter of 2015, increasing 12.0% on quarter but decreasing 5.8% on year.