According to iSuppli, after three consecutive quarters of losses, the global LCD TV panel market resumed profitability in the second half of 2009, laying the foundation for the recovery of operating revenue in 2010.
It is estimated that the global revenue of large-size TV LCD panels will increase to 49.2 billion US dollars in 2010, up 40% from 35.2 billion in 2009. In 2009, the operating income of such panels decreased by 5.2% compared with 2008.
Overall, the industry's profit margin rose to 10% in the third quarter of 2009, after a series of losses. The supplier suffered the first setback in the third quarter of 2008, when the profit margin of the 32-inch panel was zero. The 32-inch is the most popular LCD TV size. Subsequently, the fourth quarter of 2008 suffered a loss of 23%, and in the first and second quarters of 2009, it lost 31% and 12% respectively.
Now this downward trend in profits has been reversed. It is expected that the profit margin of 32-inch LCD TV panels will continue to rise in 2010 and will reach 25% in the fourth quarter.
“The growth and profitability of the global LCD TV panel market in 2010 will be driven by factors such as rising demand, shifting to larger displays, higher-value panel sales acceleration and improved manufacturing efficiency,†said Sweta, senior director of liquid crystal research at iSuppli. Dash said, "These high-value panels have a variety of features, including LED backlighting, full HD and refresh rates of 120Hz and 240Hz. In addition, the 2010 TV brand plans to focus on 3D solutions, which will promote higher frequency panels such as 240Hz. Sales. On the supply side, the higher production efficiency of the 8.5-generation and higher-generation lines will make the cost of large-size TVs more affordable. In addition, suppliers will reduce costs by reducing the number of components in the TV panel. Improve profit margins."
LED backlight brings profit
Although the start is not smooth, sales of LED-backlit panels are starting to rise, helping to improve the profitability of large-size LCD panels.
In the first quarter of 2009, manufacturers began to adopt LED-backlit LCD panels. Due to oversupply in the market, suppliers sold these panels at a lower cost than production. Although this helps drive the market to accept LED backlight technology, it also exacerbates the loss of suppliers.
However, the increase in demand coupled with tight supply will lead to a rise in panel prices and a boost in the operating income of panel suppliers.
Global shipments of LCD TV panels using LED backlights are expected to increase to 25.4 million units in 2010, more than four times that of the 4.8 million units in 2009. By the fourth quarter of 2010, 25% of LCD TV panels are expected to have LED backlights.
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