Mobile Panel Market Remains Slow

IHS DisplaySearch has released panel data for June, when prices continued to fall.

Market demand for notebooks is still weak. Consumers are deferring purchases, preferring to wait for Windows 10 and Intel’s Skylake chips. Notebook vendors recently negotiated concessions with component makers, to lower set prices or offer a commission for channel sales. New models are being prepared, to catch consumers’ demand in Q3.

Panel orders for notebooks will remain flat in Q3. A few panel makers have already decided to lower utilisation, or shift capacity to other applications such as monitors. This move will help to prevent panel prices from dropping sharply. However, prices of all sizes are still expected to fall more than $1 this month.

Summer is a traditionally slow season for mobile phones. Demand did not improve in early June, and there is still pressure on mobile phone display prices. Most Chinese smartphone brands are controlling inventory levels, to ensure better financial results this month. This may have an impact on display demand. Prices on all of the typical models are expected to fall in June.

PC brands have various tablet projects under development, which will be launched in the second half of the year. iPad family demand shrank more than the market expected in the first half of 2015, and overall tablet PC demand is weak in Q2, as it was in Q1. Panel prices are expected to fall slightly this month.