A price decline in LCD panels is expected to spread from TV panels to those used in PC monitors later this month as slowing TV demand in China helps ease supply constraints in PC panels, market researcher DisplaySearch said in a report yesterday.
The latest forecast was in line with the research house’s previous forecast of a downward quarterly correction of between 2 percent and 3 percent in prices this quarter.
Prices for LCD panels used in monitors could fall by between US$1 and US$3 per unit in the second half of this month from two weeks ago, which would be the first decline since January, the Austin, Texas-based research firm said in a report.
DisplaySearch said that “monitor panel supply is not as tight as it was in the first quarter … LCD monitor demand in China has become weaker in recent months, and there’s not much activity in other regions.”
A mainstay 19-inch panel could retail at US$85 per unit, down US$1, or 1.16 percent, from US$86 in the first two weeks of the month, the report said.
Prices for most TV panels are expected to drop by between US$2 and US$3 per unit in the second half of this month from two weeks ago. The price downtrend could widen to 37-inch and 26-inch panels from 42-inch and 46-inch panels, the report said.
DisplaySearch said “weak panel demand in China is influencing the global panel supply and demand balance.”
Chinese TV makers have accumulated two to three weeks of inventory on weaker-than-expected TV set sales during the Lunar New Year shopping season, which could cause a reduction in panel orders in the next two months, DisplaySearch analyst Zhang Bing (張兵) said earlier this month.
“Overall, demand for larger sizes is slowing and this creates price pressure for TV panels, especially 40-inch wide-format and larger [panels],” the report said.
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