What They Say
In its latest blog post, DSCC has expanded on the topic that Sweta covered in yesterday’s Display Daily, LCD pricing. The company said that it had expected a deceleration in panel price rises in Q2, but after continued price rises in components including drivers and glass, it now expects prices to continue to go up in Q2. The company looks at the different price rises for a range of TV panel sizes. Smaller panels have risen more than the largest (65″+). This helps the Taiwanese and Korean makers more than the Chinese, which have the newer G10.5 fabs optimised for the largest sizes.
DSCC said that the price in June could be a peak (but might not be).
The firm also posted a long term look at its panel price index, which really highlights the strong position of the current market. Costs, of course, will have gone down a fair amount since the index was set, so profits in LCD are really good.
What We Think
There will be a point when TV makers have to pass on more of the panel price increases and that is bound to have an impact on demand. Sales of panels at the end of Q2 will go into sets in Q3 for sale at the end of the summer or in Q4. That’s the peak period of demand, historically. (BR)
