IHS DisplaySearch has released its panel price data for March. Downward trends were seen in almost every market segment.
Due to slow demand for notebook and tablet PCs, G5, G6 and G8 LCD fab capacities have been released. Demand is expected to remain weak in Q2, so DisplaySearch expects more capacity to be released from these fabs, and panel prices to trend downwards.
Notebook panel prices fell due to weak demand in March. Inventories have not yet been used up, and notebook brands have built high panel inventories. The average notebook panel price will trend downwards by $0.5 – $1 in March. Some notebook vendors do not want to purchase too many panels and pile up inventories; they are agreeing to price reductions of $0.5 – $0.6. However, some brands are considering retaining high inventories and asking for very low prices, as they consider there to be a risk of low supply in Q3 due to component supply issues.
Smartphone display ASPs also showed a downward trend. Although end-market demand is better than it was in February due to more work days in Asia, there is still uncertainty. Brands were wary about open market procurement and so lower ASPs were preferred for promotion purposes – especially for the 5″+ category.
Tablet PC panel demand remained flat, as top brands have less intention to build inventory. These brands are concerned about whether hybrid demand will rise. White-box smartphone prices have pressured tablet PC prices downwards; several white-box agents and brands have deficits. Tablet demand is trending downward, as mentioned above, due to a lack of innovation.
