This morning, Wintek reported consolidated June sales of NT$5.22 billion, down 33.6% MoM and much worse than the average MoM June sales increase of 1% over the past seven years. Based on our records, this appears to be the biggest MoM sales drop for Wintek since the later part of 2008 and one of the most significant drops we have on record (back to 2005). We would not overreact to the weakness at Wintek as it relates to Apple because we believe Wintek may be losing market share in key next generation Apple products and therefore ramping down certain programs.
Sony, Sharp, and Toshiba have reportedly been tapped to produce the next generation in-cell touch panels.
Ming-Chi Kuo of KGI Securities says that the new touch panels will help make the upcoming iPhone at least 1.4 mm slimmer.