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Replacement of PDP and Demand for Small TVs Lift LCD TV Demand and Panel Prices, says TrendForce

21 May 2014 Display Burrell Liu

Replacement of PDP and Demand for Small TVs Lift LCD TV Demand and Panel Prices, says TrendForce

The 32W-42W panel prices climb USD 1-2 in May 2014, the 46W and 48W see price increases USD 1-3, and the 50W and 55W prices are on par for the first time with some clients even accepting price increases, according to the latest survey by WitsView, the display research division of TrendForce.

As for the monitor panel prices, due to the constrained capacity, the 18.5W, 20W and 27W show on-par prices, the 19W panel sees USD 1 price increase, the 19.5W and 21.5W prices climb slightly USD 0.3-0.5. The price increases for 23W, 23.6W, and 24W are around USD 0.5-1. 

In terms of NB panel prices, the 15.6”Wedge and FLAT have USD 0.5-1 price increases, and even USD 1-3 price increase for the additional procurement. The 14.0W Wedge and Flat prices climb slightly USD 0.2-0.5, the 17.3W price at least stays on par, and the 11.6W and 13.3W prices remain on par.

“As the LCD TV panel demand is stronger than expected, and mid-and small-sized products share the G5 capacity, along with the subsidy policy on AIO models (mainly 19.5W) and the spec and product shifts, the monitor capacity is constantly constrained,” says WitsView Research Director Burrell Liu. “Microsoft’s subsidy policy on low-priced NB under USD 249 propels the demand for 15.6W NBs. With the economic recovery in Europe and the U.S., the demands for mid-range 15.6W and 14.0W NBs heat up. WitsView projects the NB panel price in Q2 to stay on par or climb slightly as international brands’ demand for smart phones grows and squeezes some of NB panel capacity.”

Some good news is also heard in the TV market, and thanks to the PDP TV demand replaced by LCD TVs and Mexico’s official subsidy on small 23.6W TVs, the LCD TV shipment in this year is likely to top the previous projection, 209.1 M units. On the other hand, Chinese top six brands’ average inventory is only 4.7 weeks after Labor Day and they potentially show explosive growth in panel replenishment in the months to come with the healthy inventory level and the ambition to reach the annual shipment target in H2’14.

Meanwhile, panel makers are preparing for the market of H2’14 and emphasize on product developments, including new sizes, curved TV panels, 4K2K products, large sizes, chopper process, and OLED. The product diversification is beneficial to maintain the full capacity through Q3, while the capacity waste and capacity squeeze accompanying with lower yield caused by the new products are also crucial to adjust the supply end and make the supply of certain panels and sizes relatively tight.

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