Q3 peak season for LCD TV panel shipments may not materialise

DetailsEditor | 18 July 2015

Even as the LCD TV panels industry celebrated record shipments in the first half of 2015, market analyst WitsView has predicted imminent inventory issues affecting the purchasing strategies in the second half of the year.

In all, said the report, shipments of LCD TV panels in June fell 0.5% monthly but increased 7.9% yearly, totalling 22.6 million units. The shipments in the previous six months reached 132.3 million units and fulfilled 52.5% of this year’s total LCD TV panel demand, which is estimated at 252 million units. Historically, this is the first time that over half of a year’s total shipments had been achieved within the first six months of that year.

WitsView’s analysis also revealed that TV vendors had been aggressively stocking up panels since this year’s first quarter because of the shortages in the previous year, and this resulted in an unusually strong market during the off-peak season. Moreover, the data showed that TV shipments in the first quarter dropped just slightly by 0.8% due to the strong efforts from vendors to reach their yearly shipment targets. Even with a base period set higher for the second quarter, quarterly TV shipments still posted a growth of 3.3%.

WitsView’s report also identified mounting vendor inventory pressures for TV during the first half of 2015 due to the depreciation of the euro and the emerging markets’ currencies made the end market weaker than anticipated. By the end of the second quarter, TV vendors had an additional two to three weeks’ worth of panel stock compared with the first quarter. They therefore are gradually revising their shipment targets. Moreover, the accumulation of purchased panels in the first half of this year as well as uncertain market demands are going to affect vendors’ willingness to stock up. Based on WitsView’s projection, there might be a 0.7% quarterly decline in panel shipments in the third quarter, and this is quite unusual during the traditional peak season.

WitsView’s third quarter forecast for LCD TV panel shipments finds that even as the market is preparing for the Black Friday sales as before, it will be relatively less thriving than in the same period of past years. This situation, it suggested, indicates the retailers are steadily becoming more uncertain about the end market demand.