Taiwanese flat-panel makers could see a slide in the average selling prices (ASPs) in the third quarter in a bid to boost their sale in quantity and, therefore, the peak of profit may happen in the current quarter, industry watchers said yesterday.
"We think that flat-panel prices could slacken off in the [traditionally high] third quarter as the makers would try to push their sales in bulk then," said Wang Chien-erh (
A dearth of components for panels, due to market demands for new flat-panel computer monitors and TVs, caused price hikes of as high as 45 percent last year, according to DisplaySearch.
Tight supplies of materials such as glass substrates and driving integrated circuits also encouraged local manufacturers to raise their prices this year.
Officials of the nation's third-largest liquid-crystal-display (LCD) maker, Chunghwa Picture Tubes Ltd (
However, one analyst said that ASPs are likely to fall over the next quarter, as panel production is boosted over the same period.
A 15-inch panel is currently priced at around US$230 while a 17-inch panel goes for US$300.
Analysts said the industry could see the peak of prices this quarter as well as the peak of profits.
"We estimated that the ASPs may drop by 5 percent to 8 percent in the third quarter with increased output of panels," said Alex Wu (
The industry also calculated that the shortage of panels could be resolved in the third quarter with panel supplies forecast to reach 36.9 million pieces, 1 percent more than the market demands, according to figures by Chunghwa Picture..
Wu said that the adjustment in pricing is healthy and positive to the sector as well as the downstream industries.
"Downstream sectors cannot afford constantly rising cost from components like panels," Wu said.
As long as it does not affect the industry' s gross margin -- which is as high as 30 percent to 34 percent -- a decrease in prices is tolerable, he added.
With the high density of its sophisticated supply/value chain, the nation's thin-film transistor liquid-crystal display (TFT-LCD) industry, included as part of the government's "Two Trillion, Twin Stars" investment plan, is well-positioned to lead in the global arena, Wang said.
The sector is expected to create estimated revenue of US$47.7 billion this year from US$32.1 billion last year, and US$54.9 billion next year, according to DisplaySearch.
To promote global awareness of the nation's flat-panel sector, DisplaySearch's local branch is scheduled to hold the second Taiwan FPD International Conference on June 10 and 11 in cooperation with organizations such as the Taiwan External Trade Development Council and Interchange Association (Japan) Taipei Office.
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