DisplaySearch: Unfilled Capacity Drives Down Panel Prices

IHS DisplaySearch has released its pricing data for mobile display panels at the end of May.

Spot deals appeared in the notebook panel market, except on custom models. Brands pushed down mainstream panel prices by $1 or more. DisplaySearch expects weak demand to continue to drive prices downwards in June. Big notebook PC brands are adjusting inventory this month, and set inventories are still higher than normal – especially in Europe and emerging markets.

Intel has delayed the launch of its Skylake platform, and Windows 10 is not expected to boost notebook demand significantly. This is because many consumers already refreshed notebooks last year, after Windows XP support ended.

Smartphone panel prices continue to fall. Demand for finished products has been low in the largest market, China, for months, putting pressure on display ASPs. Prices are also being pushed down by oversupply; most display ASPs had fallen significantly by the end of May. 1920 x 1080 display supply is sufficient, so prices of these modules fell the most. DisplaySearch reports that bidding prices on 5″ 1280 x 720 total solutions (including cover glass and lamination) are falling fast to win orders.

Some tablet PC panel capacity is planned to switch to mobile phones in July, due to rising demand. However, phone demand will not be high enough to fill all of the empty tablet capacity. DisplaySearch forecasts a significant price decline if this capacity cannot be filled. Tablet panel prices will remain flat in early June, but there may be a ‘dramatic’ change in late June or early July.