What They Say
DSCC released data on the continued and dramatic drop in LCD TV panel prices which saw the fastest ever price declines in the history of the industry in September and October. The rate of decline dropped in November from around 15% to ‘only’ (DSCC’s quotation marks) 6.4% with an expected continued decline at around that rate to January, then easing again. Prices for the sizes (49″/50″ and 55″) for which G8.5/G8.6 fabs are optimised were the worst affected in November.
In another chart, that looks at prices/m², the firm said that 32″ panels are the ‘most commoditised’, falling fastest in oversupply and rising fastest in times of shortage.
Panel makers are reducing their utilisation levels in Q4 to help the market to stabilise and that trend is expected to continue. Profitability should still be possible for panel makers in Q4.
What We Think
This turn around the crystal cycle has been the fastest and most dramatic that I remember. Hopes for the end of the cycle remain elusive. (BR)
