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Large LCD panel prices set to dive

Posted: 07 Mar 2011     Print Version  Bookmark and Share

Keywords:LCD  panels  TV  market report 

Prices of large-sized LCD panels, defined as those ranging from 10- to 55inches in the diagonal dimension, are projected to fall 1.2 per cent on average across the product's three main applications of TVs, monitors and notebooks. Soft demand and rising inventories are driving down pricing for large-sized LCD panels, according to IHS iSuppli Research. The market watcher expects the situation to improve by April, when TV makers increase TV panel purchases.

Price declines in the 1 per cent range have been the norm in the last four months, and panel prices as a whole have not risen since March 2010. In particular, pricing for TV panels fell throughout the period, while that of monitor and notebook panels rose slightly in October and November, according to the firm.

"The current price retreat can be traced to escalating inventory for both suppliers and buyers," said Sweta Dash, senior director for liquid-crystal displays, IHS. "While average inventory among panel suppliers stands at a normal 29 days, some suppliers are seeing a decrease while others are witnessing a surge, so the situation in general is more ambiguous than what inventory levels suggest."

Dash said that among branded vendors, panel inventory is at three to six weeks, considered normal to slightly high. Both sides, however, expect inventory to rise further this month because there are fewer days in February, translating into a shorter working period in which inventory can be used.

The analyst notes that pricing will fare during the next few months depending on two critical factors: final sales figures from the just-ended Chinese New Year holiday; and upcoming TV launches in the United States and Europe. If sales on both fronts prove strong, panel inventory will return to healthy levels in April, helping overall panel prices to stabilise and perhaps stem the on-going slide.

 Large LCD-panel pricing

Figure 1: Large LCD-panel pricing change.

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