TV panel market loses steam

DetailsJoseph O'Halloran | 24 June 2015

The latest panel price report from analyst WitsView has revealed a TV panel market with noticeable weakness after a period of steady growth as the market drive gradually dissipates.

The display specialist says that until recently, branded TV vendors have faced one challenge after the next, with declining margins being the most serious. It believes that vendors have had to revise their yearly shipment targets as a result. Furthermore, the excessive amount of panels purchased during the first half of the year are causing the inventories of both TV panels and TV sets to rise.

The good news of this, said WitsView's Senior Director Eric Chiou, is that such issues will not immediately affect branded TV vendors' demands, so the adjustments in their panel purchases will be minor in the short term. Nonetheless, it warns that panel makers are encountering widespread calls from TV vendors to share the hardship together and cut prices. With demands not being as strong as before, warned Chiou, the outlook for the TV panel market has therefore changed from cautiously optimistic to fairly conservative.

WitsView's survey of quote prices for different sized TV panels also found that the 32-inch has seen a relatively sharper price decline in June, with the average drop-off around US$2-$4. Intriguingly for a growing market, prices for 48- and 49-inch panels also started to weaken whether in a full HD or Ultra HD category. WitsView noted that their average price drop-off in June has been around US$2-$3 and that the quote prices for the 50-inch full HD panels have followed suit, falling by US$1-$2 in order to stay competitive.