TV panel shipments set for Q4



| 18 August 2015

The current high level of LCD TV shipments is set to drop as the year moves into its final stages says the latest monthly LCD TV panel shipment report from WitsView.

samsung SUHDIn its analysis, the researcher found that total TV panel shipments reached 22.31 million units in July, down 1% from the prior month and up 7% a year ago.

Branded TV vendors told the report authors that they were optimistic about the peak season sales in the fourth quarter even though sales results in the end market have been weak so far this year. Moreover, said WitsView, brand vendors have recently raised their panel purchases in order to strengthen their negotiating positions with the panel-makers.

The result of all these factors said the analyst was to prop up panel shipments, which it calculates will stay at about same level in the third quarter as in the second.

Among the six top panel makers cited in the report, SDC, BOE and CSOT stood out in the July shipments results. SDC benefitted considerably from returning orders for Samsung TV sets, and its monthly shipment growth reached 28% as a result.

BOE and CSOT respectively posted 4% and 5% growth in July. Their performances were based on the expansions of their Gen. 8.5 capacities, which led to shipment increases for their 32", 48", and 55" panels. Yet the other three top panel-makers LGD, AUO and Innolux did not increase their TV panel capacities and lacked additional orders from major clients. This led to their July shipments respectively declining by 13%, 2% and 18% compared with the prior month.

But it will be all change in Q4 according to WitsView's forecast. It cautioned that the slowdown in the Chinese regional economies shows that the country's domestic market is saturated. Moreover, it noted that branded TV vendors apparently have not devised exciting activities related to Chinese promotional sales events that will be taking place towards end of the year, such as Mid-Autumn Festival, National Day and Singles' Day. Whether brand vendors will keep up their panel purchases after mid-September is going to be a major concern in the panel market, it warned .

"While panel stock up demand has been strong in the previous three quarters of 2015, the end market sales have been flat and inventories have been building up as panels are not being consumed at a steady pace. Because of low demand and rising inventory level, WitsView's estimates that TV panel shipments in the fourth quarter will fell 10% compared with the third as the supply-demand imbalance become more severe," the company commented.