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Panel shipments stumbles in July

Posted: 31 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:panel shipment? LCD panel? market demand?

Based on the survey conducted by WitsView, large panel shipments in June-July for the five major applications reached only 56.43 million units, showing 5.2 percent decline and 11 percent YoY growth.

There were 15.70 million units of TV panel shipment in July, a 6.3 percent decrease from June. IT market demand was also weak, with Julys monitor panel shipment of 14.85 million units, a 7.9 percent decrease compared to June. Notebook panel shipment in July is down to 15.63 million units, a 0.5 percent drop from the previous month. Tablet PC panel shipment in July also slid to 7.09 million units, a 1.9 percent drop from June. Netbook panel shipment was 3.13 million units, suffering a 14.8 percent fall from June.

LCD panel shipments

WitsView analyst Jian-An Chen stated that the debt crises in Europe and the U.S. since early 2011 have affected both global business and consumer markets, resulting in low consumer confidence. While panel makers have been reacting with reduced production, panel prices in July and August continue to slide. The price drop can be attributed to the remaining previous inventory and insufficient production cutback. On the other hand, brand customers have been pushing back their procurement plans to August and this has directly affected the July shipment performance for large panel.

Consequently, market outlook remains dim despite the start of Q3, the traditional peak season of the industry. WitsView predicts a QoQ growth of one to three percent. Despite the bailout policies from major world economies and long-term solutions in response to the 2008 financial crisis, the road to global economy recovery is still very bumpy, leading to very slow progress.

The future rise of China panel makers is seen to intensify the imbalance in panel supply and demand. Additionally, it will lead to a three-way battle among panel makers in Taiwan, China and Korea for the Chinese domestic market. LCD panel demand in China has been stimulated once after the implementation of�Home Appliance Subsidy policy for rural areas. On the other hand, LCD panel penetration in Europe and the U.S. has reached relative peaks. For Taiwan panel makers who do not carry their own brands as major supporting outlets, the emerging markets should be a major target with relatively high potential. In other words, it is going to be critical for Taiwan panel makers to effectively integrate upstream and downstream resources, including business group or shareholders. It should also establish strategic alliances with customers through manufacturing, production, sales and collaboration with domestic brands.

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