Panel Stocking is Over and Prices Continue to Drop

Sigmaintell, the Beijing-based market research firm, released its monthly forecast for TV panel prices. The report comes after TV manufacturers have all but finished stocking up for the holiday shopping season meaning game over for promising sales news, if there was any to begin with in light of continued sluggish demand. The report predicts further price declines across all sizes in November as demand weakens.

According to Sigmaintell’s data, prices for 32-inch panels are expected to fall another $1 in November, continuing a downward trend as brand and second-tier TV makers have cooled procurement.

In the 50-inch segment, which has seen panel demand decrease, average prices could dip $1 next month. The 55-inch size will likely see a smaller $1 decline as supply and demand moves towards equilibrium.

Larger sizes face similar headwinds, with average prices forecasted to slide $2 amid weak demand. However, production cutbacks by leading Chinese panel suppliers may limit the extent of price drops for now. Chinese panel makers BOE, Caihong Display and TCL CSOT have been seeing a return to profitability in the last quarter with more aggressive cost controls, and better inventory management. We can expect continued downward pricing pressure, and we can expect continued operational paring at manufacturers.