Hot August melts display panel prices



| 22 August 2015

Even though the summer months are the traditional peak season for IT and TV products, display panel makers have been struggling to keep up their prices, says leading display analyst Wits View.

The company’s data showed that IT panel demand remained weak in August, while the TV panel market witnessed a larger price decline compared with the prior month because of concerns about end market sales and rising inventory levels. It also suggested that ‘aggressive’ efforts from panel makers to retain their orders have contributed to the falling TV panel prices.

WitsView’s survey of August TV panel prices shows the average quote price for the benchmark 32-inch screen fell close to the key $70 threshold even as panel makers maintained high capacity for the segment. Moreover, the large display report stated that leading Chinese panel makers have cut prices for the 32-inch products in order to match their South Korean rivals, which have been using their cost advantage to undercut competitors.

“Panel makers’ main goal right now is to maintain high shipment volume and protect market share,” explained Eric Chiou, WitsView senior research director. “Since they are not planning to adjust their panel production in the short term and new capacities are setting up in China, the oversupply problem will worsen. Furthermore, the TV panel market has become increasingly conservative about TV set sales due to the reduced scales of upcoming promotional events and the slow pace of the global economic recovery. All these factors have created a buyer’s market with lots of noises in price dealing.”