What They Say
DSCC have confirmed that panel prices are now peaking and are likely to decline for the rest of the year as supply has improved and demand growth slowed. Still, the prices should remain well up compared to their earlier lows in 2019 and 2020.
Smaller TV screen sizes (32” up to 43”) peaked in June while larger sizes (49” and larger) will peak in July.
Whereas in May 2020, 75” panels sold at an area premium of $77 per square meter higher than the 32” panel price, as of June 2021, they are selling at a $62 discount on an area basis. This means that those Gen 10.5 fabs could earn higher revenues from making 32” panels than from 75” panels. The pattern for 65” is even more severe, and in June 65” was selling at a $67 per square meter discount (alternately, a 21% area discount) compared to 32”.
DSCC also published an analysis of LG & Samsung’s preliminary results.
What We Think
As usual. there’s a lot more analysis in the original article, but we have been covering this topic, so have kept things brief here.
Q3 is traditionally the peak for demand for TV manufacture ready for the holiday season. However, as was highlighted at the Display Week Business Conference report, Black Friday deals are likely to be less dramatic and down in volume than previous years as set makers are squeezed by the high panel pricing. (BR)
LCD TV Panel Prices January 2020 –December 2021
