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June 28, 2017

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TV panel prices fall in 2nd half of August

TAIPEI--Prices of TV panels quoted for the second half of August were down from the same period of July on expectations that suppliers in China and South Korea will increase supplies, a research report said Wednesday.

In the report, WitsView, a display research division of Taipei-based TrendForce Corp., said an end to China's year-long subsidy program on TV purchases May 31 also slowed demand for TV screens and sent screen prices lower.

WitsView said prices quoted for 32-inch TV screens fell US$2 and prices of 39-inch panels dropped US$4-US$7, while prices of 40-inch TV displays decreased US$6-US$8, prices of 42-inch screens dropped US$8-US$10 and prices quoted for 46-55-inch screens fell US$6-US$10.

The research agency said that as shipments of low-cost 50-inch panels started, screens of a similar size are facing downward pressure in pricing in the second half of this month.

Burrell Liu, an analyst with WitsView, said expectations of rising supply have had an impact on manufacturers' pricing power, as many buyers have put their purchasing plans on hold waiting for lower prices, a move that will depress product prices, Liu said.

In China, six to eight advanced 8.5th-generation production lines are expected to start to roll out 40-55 inch screens during the 2014-2015 period, and the higher output plans have stirred up speculation that prices will be cut due to higher supplies.

In addition, new 8.5th-generation production lines run by South Korean companies in China will also join competition in China's large-sized TV screen market in the near future, which is expected to further complicate the market conditions.

Taking into account China's move to end its TV purchase subsidy program, WitsView said worldwide LCD TV shipments for 2013 are expected to fall 0.7 percent from a year earlier to 205 million units.

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