Big Chinese smartphone brands bullish revenue growth targets for 2016-2017 could cause oversupply of unsold phones, warned a Morgan Stanley analyst.

The sapphire substrate application industry hit a low point when Apple abandoned employing sapphire screens in its new generation iPhones, many Taiwanese sapphire manufacturers have bear the brunt from the abrupt decision, reported Chinese-language newspaper Commercial Times.

Demand of LED has resumed in the second quarter. Leading Taiwanese LED chip maker Epistar reached full production capacity in AlGaInP LEDs. Meanwhile, Unity Opto is expected to see two-digit growth in the second quarter as its order visibility rose to two months.