The recovering global economy has increased demand for consumer electronics and personal computers, while the problem of a glass substrate shortage is expected to further drive up prices for large-sized panels in the third quarter, after four months of consecutive price hikes.
“Prices could rise by as much as a US$6 to US$10 increase for monitor panels, US$10 to US$15 for notebook panels and US$20 to US$30 for television panels,” researcher iSuppli Corp said in an Aug. 3 report.
While makers of large-sized panels are expected to reach profitability in the second half of the year on the back of rising shipments and prices, a price correction could hit the industry sometime in the fourth quarter after prices peak in the current quarter, capping the magnitude of potential profitability.
“Increases in pricing and shipments are expected to peak in August and then start to slow in September because of seasonality and the end of inventory build-up,” iSuppli said.
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