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MarketWise – LCD Industry Dynamics Update, June 2014

The LCD industry is changing rapidly and in order to catch up with the dynamics more frequently, we publish MarketWise-LCD Industry Dynamics every month. Here are key takeaways from the June report.

  • JDI started production of 4.7″ iPhone 6 panels in April, and 5.5″ panels in May, both on Gen 5.5 lines. In June, JDI started 4.7″ production on its Gen 6 line.
  • Driver IC makers received requests from panel makers for drivers for 4K tablet panels. They are developing a single-chip solution that is likely to be ready by the end of Q3’14. The 4K tablet panels have display sizes from 6.x” to 9″.
  • Most TV brands are still holding to their shipment forecast for 2H’14 as production approaches the peak season of August-October. Even though the top brands have extra panel inventory, they have not indicated any intention of cutting demand.
  • TV panels are being controlled by the tier 1 TV brands, so many smaller players or those with a less diversified supply base are struggling with higher prices. The TV panel supply/demand outlook for June is unclear, and Q3 is still uncertain.
  • Samsung Display aims to maintain its lead in monthly shipments over the next several months. However, its intention to increase TV panel prices more than its rivals could put its shipment targets at risk.
  • The LCD panel supply constraint has led TV brands and channels to start planning and negotiating Black Friday promotions earlier. This has helped sustain the demand forecast for Q3’14. The supply of 60″ and 65″ is currently balanced to tight.
  • Innolux’s transition from 39″ to 40″ (39.5″) seems to be going well, as more TV makers, including the top brands, are converting.
  • Both Samsung and LGE are likely to outpace their original shipment targets set for TV this year, reaching 49M and 34M respectively, though they are still concerned about the demand outlook for 2H’14.
  • In May, LCD TV production at Chinese tier 1 TV brands fell short of targets again, due to lower than expected sales in their domestic market. This seems to have had a limited impact on LCD TV panel shipments to Chinese TV makers. Most Chinese TV brands still believe they can achieve their shipment targets for this year.
  • Some monitor panel makers are quoting price increases such as $5 on 19W, and some leading PC monitor brands are accepting them. This will pressure other brands to accept similar price hikes to secure allocations.
  • Due to tight supply, PC monitor brands started building up inventory in some sizes, so that a supply constraint will not again be a problem this year during Q3.
  • Most PC brands’ inventories have dropped to very low levels, and they have realized that a shortage of notebook capacity will be an issue. The rise of back-to-school demand and several commercial projects have led to PC brands’ aggressively purchasing more panels.
  • China’s State Administration of Press, Publication, Radio, Film and Television (SARFT) rule for “One Single Content Provider on Each End Product” has forced TV and STB makers to limit access to video services to one of the approved service providers.
  • Tonisha Parra

    I like this post… The LCD production is shifting in a hurry and order to take up with the dynamics extra commonly.

    Posted by Tonisha Parra| samsung pc monitors