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Sales of large LCDs slow down in Q3 after oversupply

Posted: 14 Nov 2010 ?? ?Print Version ?Bookmark and Share

Keywords:LCD? display? panel?

Lack of orders and a subsequent tightening of supply led to a 4 percent quarterly decline in shipments of large-area (9.1in and larger) TFT LCDs in the third quarter, according to a DisplaySearch.

The market watcher states that shipments fell to 163 million units, which is nevertheless 7 percent higher that in the same period last year. Panel manufacturers expect shipments to grow just 3 percent in Q4.

Excess supply in the third quarter led to the lower panel prices and a move to reduce capacity utilization rates, according to David Hsieh, DisplaySearch's vice president for the Greater China Market. He added, however, that shipments of LED-backlit panels are still growing.

"The Q3 2010 performance results are partly due to over-optimism and over-stocking in Q2 '10. Looking forward to Q4 2010, panel prices, inventories and capacity utilization have all fallen to lower levels. Despite this, the TFT LCD industry is expected to overcome these tough challenges by the end of the year," Hsieh said.

The report adds that shipments of panels for monitors (8 percent) and notebook PCs (14 percent) saw quarterly declines while those for LCD TVs and slate PCs continued to grow in Q3 2010.

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