According to the liquid crystal display (LCD) price tracking report of IHS iSuppli Corporation, the lack of demand caused the TV panel to drop by nearly 5%, dragging down the overall price trend of large-size LCD panels in September.
The price of LCD TV panels fell by 4.9% in September, the largest decline in at least 12 months, and it was the second consecutive month that it fell more than 4%. The price of LCD TV panels fell by 4.3% in August, and the average decline in the previous four months was less than 1%. To find a decline that is greater than September, it will take a full 12 months back, that is, in September 2010, when the price of LCD TV panels fell by 5.2%. With the approach of the end of 2011, TV panel prices continued to fall in October.
The weak market price of TV panels means that the overall price of large-size LCD panels will remain low, including panels for monitors and notebook computers. The average price of LCD panels in the three major application areas in September fell 3.8% from August.
IHS believes that the LCD TV panel market performed poorly, mainly due to the decline in demand in Western Europe and North America. Taking into account the fragile economy in these regions and the threat of a secondary recession, global LCD TV shipments will continue to face difficulties, which will in turn cause a serious impact on the TV panel market.
China is also a factor that caused the slump in the LCD TV panel market. Most of China's panel purchase activities were completed in August and are ready for the Golden Week sales season. It is expected that the next wave of panel purchases in China will wait until the end of the year, before the arrival of the Spring Festival in January 2012.
In order to boost demand for LCD TV panels and boost TV makers' purchases, panel suppliers are currently offering very good prices for the upcoming European and American Black Friday and Christmas holiday buying season. However, TV brands have also drawn up very competitive prices to attract consumers, which in turn exerts greater pressure on LCD TV panel makers to demand lower prices, especially LED backlight panels. Some TV panel prices have hit the cash cost level, and panel makers are being forced to reduce capacity utilization and reduce inventory to ease the oversupply situation and prompt the panel market to restore balance.
In September, the prices of 40-inch and 42-inch LCD TV panels dropped by an average of 10-15 US dollars, and the 46- and 47-inch panels dropped by 5%. Prices continued to fall in October, but at a slower pace, US retailers are expected to launch 42-inch full-HD LED-backlit LCD TVs on Black Friday for less than US$400.
Unlike TV panels, monitor and notebook panels were milder in September, both down 1.7% from August. Monitored demand in the global corporate market is better than that in the consumer market. The attention of the consumer market is still mainly on smartphones and tablets, such as Apple’s iPhone and iPad. However, the notebook panel continued to suffer from sluggish performance and disappointing sales after school, which was also due to the impact of smartphones and tablets.
In October, the overall price of large-size LCD panels fell by several percentage points, but due to the manufacturers' control panel output, prices are expected to stabilize in November and December.
Author: Sweta Dash
The price of LCD TV panels fell by 4.9% in September, the largest decline in at least 12 months, and it was the second consecutive month that it fell more than 4%. The price of LCD TV panels fell by 4.3% in August, and the average decline in the previous four months was less than 1%. To find a decline that is greater than September, it will take a full 12 months back, that is, in September 2010, when the price of LCD TV panels fell by 5.2%. With the approach of the end of 2011, TV panel prices continued to fall in October.
The weak market price of TV panels means that the overall price of large-size LCD panels will remain low, including panels for monitors and notebook computers. The average price of LCD panels in the three major application areas in September fell 3.8% from August.
IHS believes that the LCD TV panel market performed poorly, mainly due to the decline in demand in Western Europe and North America. Taking into account the fragile economy in these regions and the threat of a secondary recession, global LCD TV shipments will continue to face difficulties, which will in turn cause a serious impact on the TV panel market.
China is also a factor that caused the slump in the LCD TV panel market. Most of China's panel purchase activities were completed in August and are ready for the Golden Week sales season. It is expected that the next wave of panel purchases in China will wait until the end of the year, before the arrival of the Spring Festival in January 2012.
In order to boost demand for LCD TV panels and boost TV makers' purchases, panel suppliers are currently offering very good prices for the upcoming European and American Black Friday and Christmas holiday buying season. However, TV brands have also drawn up very competitive prices to attract consumers, which in turn exerts greater pressure on LCD TV panel makers to demand lower prices, especially LED backlight panels. Some TV panel prices have hit the cash cost level, and panel makers are being forced to reduce capacity utilization and reduce inventory to ease the oversupply situation and prompt the panel market to restore balance.
In September, the prices of 40-inch and 42-inch LCD TV panels dropped by an average of 10-15 US dollars, and the 46- and 47-inch panels dropped by 5%. Prices continued to fall in October, but at a slower pace, US retailers are expected to launch 42-inch full-HD LED-backlit LCD TVs on Black Friday for less than US$400.
Unlike TV panels, monitor and notebook panels were milder in September, both down 1.7% from August. Monitored demand in the global corporate market is better than that in the consumer market. The attention of the consumer market is still mainly on smartphones and tablets, such as Apple’s iPhone and iPad. However, the notebook panel continued to suffer from sluggish performance and disappointing sales after school, which was also due to the impact of smartphones and tablets.
In October, the overall price of large-size LCD panels fell by several percentage points, but due to the manufacturers' control panel output, prices are expected to stabilize in November and December.
Author: Sweta Dash
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