Samsung, LG drive large TV panels rise but ceiling nears
| 22 November 2014
Even though the market will inevitably get its fourth quarter boost, with fuel price growth boosted by the likes of LG and Samsung placing orders, the large TV panel market is due to hit a ceiling soon, says analyst WitsView.
The division of the Taiwan-based market intelligence firm TrendForce described the consumer electronics market as being a ‘go-go’ in November 2014 because of the many sales promotions this month, notably China’s Double shopping holiday, which earned NT270 billion dollars in revenue, and the forthcoming Black Friday in Europe and America coming up at the end of the month.
Yet even though, said WitsView senior research director Eric Chiou, demand for Samsung TV panels produced by the company’s visual display division was resilient, it had expended vast resources and indirectly decreased panel supply to competitors. As a result, the 40W and 48W, the main sizes used for Samsung displays, jumped by US$3. The shortage of 48W panels prompted a number of vendors to stock up on the 50W, which also increased by US$2- US$3. By contrast, this month, the 32W only increased by US$1, reversing several months of steady increases.
“As the off-peak season approaches, it is not surprising to see signs of slowing panel demand,” Chiou added, asserting that manufacturers were hesitant to hold a large amount of inventory while, as result, Samsung and LG, meanwhile, were focusing on expanding market share. “Because these two South Korean brands’ panel procurements are enormous, their demand is the main driver of price movements,” he added.
In general WitsView regards the overall outlook for the overall TV panel market as optimistic and given that monitor panels fall under the same product category, prices were the same as in October 2014. However, Chiou cautioned, “ customers are starting to request lower prices on the larger-sized panels, including the 23.8W and 27W. As we enter the off-peak season, customers’ bargaining power will increase.”