Weak European, U.S. economies bring down panel demand

According to WitsView, a research division of TrendForce Corp., shipments of LCD TV/LCD monitor/large-sized notebook (NB) and netbook panels registered a Y-o-Y of -1.2 percent and -3.3 percent for May and June, respectively. It added that the regression stemmed from low consumer confidence in European and U.S. markets. Reasons behind the weak buying power of the end market include the debt problem in Europe, high level of unemployment and imminent debt ceiling issue in the U.S. and worsening global inflation. The survey on the latest shipment of large-sized panels in June this year is 59.53 million units with M-o-M regression of 2.8 percent and Y-o-Y growth of eight percent.

From the perspectives of applications, even with promotion slogans of 3D features and LED stylish design, the sales performances of all TV brands have been mediocre under the effect of slow economic recoveries in Europe and U.S. TV panel shipment in June is around 16.76 million units—almost identical with the shipment in May. The latest prediction of global LCD TV demand by WitsView was adjusted downward to 203–205 million units from 211 million units. The IT market has also been weak with monitor panel shipment at 16.13 million units in June with M-o-M regression of 7.2 percent. The shipment of NB panels is 15.71 million units with M-o-M regression of 4.3 percent. The shipment of netbooks is 3.68 million units with M-o-M regression of 8.9 percent. The only panel type with remarkable growth is the tablet panel with shipment at 7.23 million units and M-o-M growth of eight percent.