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Of three applications, panel prices posted a large decline which resulted from the weak demand in 3Q10 hot season. What the industry encounter recently are the diminishing profit from large-sized panels, and the necessity to lower the cost.
According to WitsView’s latest survey on LCD monitors, in August 2010, the global top ten LCD monitor brand vendors’ main strategy was to clear away the inventory which was piled up from 2Q10. In response to the continued decline in IT panel prices, panel procurement and set production volume were revised downward to reduce the loss.
DRAMeXchange: 1H'Sep. mainstream NAND Flash contract price decline 5-10% and mild downward price trend is expected in 4Q10.
DRAMeXchange: 1H’Sep DDR3 2GB average contract price decline 10% and 20% QOQ is expected in 4Q10
According to the latest survey by WitsView, large-sized panel shipment posted a 2% MoM increase to 51.79 million units in August. Downstream vendors restocked early in preparation, leading to the record high shipment in large-sized panels in 2Q10. However, since the end-market demand was worse than expected, the rising inventory among downstream vendors become the top priority to clear away.
