Touch panel maker Wintek is expected to see its gross margin decline in the first quarter due to reduced shipments of 7- to 10-inch touch panels as clients are transitioning to new products, according to industry sources.

Wintek's shipments of black-colored iPad 2 touch panel modules in January and February were limited due to low yields, said the sources, noting that while the company has been trying to gear yield rates recently, it is still unable to ramp up its output significantly.

However, Wintek stated that it is positive about the business outlook for the second quarter and expects its revenues and gross margin to bounce back to previous high levels.