During the second quarter of 2025, shipments of small- and medium-sized display panels are anticipated to experience a 10% month-over-month (MoM) decrease and a 6% year-over-year (YoY) drop. This decline is predominantly attributed to inventory adjustments undertaken by manufacturers of devices like smartwatches and smartphones. These manufacturers had previously bolstered their panel inventories significantly in response to tariff risks, but as these tariff concerns diminish, they have adopted a more conservative procurement strategy, resulting in a decrease in panel shipments.