Without end-market demand to support continued panel price increases, our Monthly Large-Area LCD and PDP Pricing Report indicates that the increase in panel prices that started in April stopped in the middle of June. Panel makers had hoped that prices would continue to increase, improving their profitability, but the upside seems very short-lived and panel prices are still below costs for a majority of the panel models.
Continue Reading
Category Archives: Flat Panel Displays
Rising LCD TV Panel Prices: Temporary, or the Beginning of a New Cycle?
At the end of April, we forecasted that prices for most LCD TV panels will start to increase in May, reflecting tightness in the supply chain, as well as panel makers’ strong motivations to stem losses. On average, panel makers earned profits in only three out of the 10 quarters preceding 2011. Now, after more than 12 months of falling panel prices, increases are starting to be seen.
Continue Reading
Emerging Disruptions to the FPD Supply Chain
In the second week after the Japan earthquake, some additional impacts to the FPD supply chain are beginning to emerge. In the near term, some panel makers need to work with new material suppliers to keep their lines running. Longer term, there are some indications that key equipment production may be delayed.
Continue Reading
Foreign TFT LCD Panel Makers No Longer in a Hurry to Build Fabs in China
When the race to invest in China started among TFT LCD makers in 2009, we wondered about the rationale behind this strategy. Now that Korean and Taiwanese governments have approved their companies’ plans, and those companies have struck deals with the Chinese government and provinces, is the race slowing down?
Continue Reading
Will Panel Prices Rebound in Q2’11?
Panel maker inventories and inventory in the sales pipeline are two key variables of TFT LCD supply and demand. As indicated in our recent press release, after nine months of continuous declines in panel prices , inventory adjustments, panel shipment adjustments, and order cuts, inventories held by panel makers are returning to a manageable level. As long as panel makers do not rapidly boost capacity utilization before demand makes a come-back, then the supply side should be worry-free.
Continue Reading
