The prices of LCD panels used for big-screen televisions slid again in the first half of this month as demand from China waned after the Lunar New Year shopping season, market research firm DisplaySearch said yesterday.
The downtrend is expected to continue in the second half of the month, with the prices for 42-inch and 46-inch LCD panels forecast to drop by US$5 per unit to US$335 and US$437 respectively from two weeks ago, a report by the Austin, Texas-based researcher showed.
“Although some global TV brands continue to stock panels for aggressive sales targets, weak panel demand in China is influencing the global panel supply/demand balance,” DisplaySearch said in the report.
Last month, the researcher said sales of flat-panel TVs in China fell short of market expectations of 4 million units, with initial tallies showing that sales could drop below 3.5 million units. China is the world’s third-largest LCD TV market.
Some panel makers have reduced prices for large-sized panels in the first half of this month to stimulate demand, DisplaySearch said.
The price for mainstream 32-inch TV panels is expected to be unchanged at US$208 per unit in the first two weeks of this month, the market researcher said.
However, some panel suppliers managed to keep prices flat as a lingering component shortage has limited supply to certain customers that are building inventory in anticipation of strong demand in the second half of this year, DisplaySearch said.
Prices for LCD monitors and PCs are expected to be flat as tight supply has driven up prices since December.
A 19-inch panel for LCD monitors may be priced at US$86 per unit, up almost 15 percent from the US$75 per unit quoted in December, DisplaySearch’s report said.
Citigroup analyst Jonathan Rhee, however, said in a report yesterday that he did not expect a significant decline in panel prices given component supply constraints.
“We continue to believe the current firm panel pricing trend implies a healthier supply/demand environment in the making,” Rhee said in the report.
Citigroup reiterated its “buy” recommendation on LG Display Corp of South Korea.
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