IHS DisplaySearch has shared its latest panel pricing data from the PriceWise service, covering early July.
The European economy is ‘falling into a muddy pit’, due to the strong US dollar and the ongoing debt crisis in Greece. Monitor brands are adjusting channel inventories, which built up in the first half of the year on weak demand. Many brands are also shifting their focus to the US market for higher profits, due to the strong dollar, which enables them to lower prices for promotions.
Some brands are under pressure to decrease monitor panel purchases, as they need to reduce inventory levels and achieve better quarterly financial results. Due to this, IHS expects monitor demand to be slow in July. Panel prices will fall, as they did in June.
TV makers with high purchasing power are re-allocating orders, from captive panel suppliers to multiple suppliers. This is in order to negotiate greater cost savings in the second half of 2015. To improve these bargains, and mitigate the pressure to lower prices (especially on 1920 x 1080 units), panel makers are talking to TV vendors, to provide a stable supply of quality UltraHD panels at ‘competitive’ prices.
UltraHD demand from the top global brands is rising. However, most TV makers have said that overall demand is slowing. Some have cut demand since June, and have lowered their demand forecast for Q3, in order to better control inventories. Some TV makers still hope to drive strong shipments in the second half of the year. However, they have been facing financial difficulties, and are asking for more price concessions and market development funds from panel suppliers. Some special deals have been negotiated in early July, specifically for 32″ units.
Notebook PC brands have been lowering their inventories. Panel and set inventories are higher than normal, especially in Europe and the USA. Back-to-school preparations may help to digest these inventories, but PC brands do not intend to buy more panels this month.
Intel has postponed the release of its next platform, Skylake, which has delayed the release of new notebook PCs. Some panel suppliers have moved notebook capacity to other applications. Additionally, some suppliers are lowering notebook utilisation to prevent prices from falling further. Therefore, IHS forecasts a gradual decline in prices – although not as much as seen in June – unless PC brands purchase more panels.
