IHS has shared its pricing figures for large-area (9″+) LCD panels in July and early August.
Monitor makers are shifting capacity to produce TV panels, due to weak demand and shrinking profitability. Monitor panel supply has shrunk in recent months, and is expected to continue to do so in the future. This trend may keep panel prices flat. However, the current pressure on prices is as heavy as it was in July.
TV panel supply has reversed, and is now above demand in all sizes. Strategic spot deals on 32″, 48″/49″ and 55″ sizes – all priced below the market average – are having an effect on the prices of neighbouring sizes. The result has been heavier pressure on all TV panel prices in early August.
Some TV makers are still hoping to drive strong shipments this year, but are facing financial difficulties and inventory pressure. These brands are requesting larger price concessions from multiple panel makers. TV vendors with stronger purchasing power are re-allocating their orders, from captive suppliers to multiple sources, in order to negotiate better deals. Some small makers are talking to panel companies that are struggling with cuts, and are feeling the pressure to produce panels. Panel makers continue to make special deals, including on UltraHD units, to secure volumes in Q3.
Spot deals on notebook panels appeared in the market at the end of July. The exceptions were customised models. Some second-tier panel makers lowered prices by more than $1, to attract customers. Their are trying to achieve more orders at limited volumes.
In August, mobile PC brands strategically raised their demand for popular 14″ and 15.6″ panels, while asking for further price concessions. Competition is rising between tier-one and tier-two brands. Price pressure on mainstream panels remains heavy.
