What They Say
This ‘stock chart’ has rarely looked so inappropriate!Innolux & AUO put out their monthly results for October. Innolux was down 8.0% MoM and 41.7% YoY to $521 million with large display volume down 4.9% to 8.77 million, while small/medium displays were down 6.7% MoM to 21.91 million.
AUO was up 5.5% in October to $540 million but down 43.5% year on year. Area shipment was up 3.1% on a monthly basis.
What We Think
In our Display Daily today, DSCC’s Bob O’Brien sets out his firm’s expectation that panel prices have hit rock bottom and are going to recover. However, the recovery is going to be slow. Separately, we have a release from Omdia that sets out its view that three could be a ‘a rebound to normalization in demand by the second half of 2023’. It also highlighted that 2022 will be the first year in the history of the FPD industry that has seen a decline in display area shipped. Omdia believes that the precipitous drop in panel prices will drive further set price reductions which will in turn drive demand for larger sets.
Well, that’s the way things have always worked in the past, so it’s a fair bet that the process will happen again that way. (BR)
