Light at end of tunnel for flat panel flat market


Editor ©RapidTVNews | 15-02-2012



By most calculations the flat panel TV manufacturing industry has borne the brunt of the general depressed economic times yet it would appear that it is set for a rebound.
According to the latest NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report, the flat panel display industry is forecast to correct itself through cyclical nature of market forces.
Explained Charles Annis, Vice President of Manufacturing Research at NPD DisplaySearch: “Delays in capacity expansion in 2012 and 2013 combined with continuously increasing demand are expected to finally start pushing the industry towards a healthier future.”
Looking at the background to the present economic conditions, the analyst observed that with FPD makers having lost money for the past six quarters in a row and the FPD industry being in the midst of its longest down turn since its creation, panel makers had to date frozen almost all expansion plans for LCD TV fabs.
Yet at the same time, lower prices are driving increased demand, particularly for large, over 50-inch, screen size category.
Looking forward, NPD DisplaySearch predicts that the net effect will be a tightening of the supply/demand balance, particularly in 2013, when the glut ratio is forecast to fall well below 10% for the first time since Q2’10. This is expected to set off another crystal cycle of improved panel pricing, higher profitability and increased investment.
Even though it expects the overall FPD equipment market to suffer a severe recession in 2012, falling 63% from 2011, the market is forecast to rebound in 2013, driven in large part by spending on new AMOLED production lines.
ditor ©RapidTVNews | 15-02-2012



By most calculations the flat panel TV manufacturing industry has borne the brunt of the general depressed economic times yet it would appear that it is set for a rebound.

According to the latest NPD DisplaySearch Quarterly FPD Supply/Demand and Capital Spending Report, the flat panel display industry is forecast to correct itself through cyclical nature of market forces.
Explained Charles Annis, Vice President of Manufacturing Research at NPD DisplaySearch: “Delays in capacity expansion in 2012 and 2013 combined with continuously increasing demand are expected to finally start pushing the industry towards a healthier future.”
Looking at the background to the present economic conditions, the analyst observed that with FPD makers having lost money for the past six quarters in a row and the FPD industry being in the midst of its longest down turn since its creation, panel makers had to date frozen almost all expansion plans for LCD TV fabs.
Yet at the same time, lower prices are driving increased demand, particularly for large, over 50-inch, screen size category.
Looking forward, NPD DisplaySearch predicts that the net effect will be a tightening of the supply/demand balance, particularly in 2013, when the glut ratio is forecast to fall well below 10% for the first time since Q2’10. This is expected to set off another crystal cycle of improved panel pricing, higher profitability and increased investment.
Even though it expects the overall FPD equipment market to suffer a severe recession in 2012, falling 63% from 2011, the market is forecast to rebound in 2013, driven in large part by spending on new AMOLED production lines.