What They Say
Earlier this week, DSCC put out a blog post highlighting the slowing down of TV LCD panel prices as price gets close to cash cost for some panel makers. Inventories are now generally sufficient, which is acting as a damper on price changes.
Although the declines are slowing down in Q1, they are still severe for panel makers. The firm expects Q/Q price declines in Q1 2022 to range between 9% and 23% and to average 14%. With the most severe price declines occurring on 49”/50” and 55” panels, those two sizes will see price declines exceeding 20%.
While prices have converged for all the smaller size panels, 65” and 75” panels continue to have a premium on an area basis. (There’s a chart on the blog of price/m² for different sizes).
By the end of the forecast period, LCD prices will be at the lowest ever – a dramatic change to last year.
The article summarises recent financial reports from panel makers.
What We Think
The comments about a possible end to the Crystal Cycle at the Display Week Business Conference last year look even further out than they did last summer. Still, one day there should be an end to it. I remember going to a talk many years ago that highlighted that the HDD business didn’t develop to profits until it came to the end stage when nobody wanted to come into the market any more. (BR)
LCD TV Panel Prices January 2020 –June 2022
TV Panel Price Index and Y/Y Change, January 2015 – June 2022
