Shipments outpaced production for large-sized LCDs
Keywords:large-sized LCD? smartphone? tablets? monitor?
"March represented the first time in four months that shipments outpaced production for large-sized LCD panels," said Ricky Park, senior manager for large-area displays at IHS. "The last time the same phenomenon took place¡ªwhen shipment was higher than production¡ªoccurred in November 2012, an understandable occurrence as manufacturers raced to pump out more displays in time for the December holiday season and Lunar New Year holiday season in China. In March, panel suppliers applied the same tactic to chip away at creeping inventory, the upshot of shipments falling below production levels from December 2012 to February 2013."
After March, however, the current dynamic took a different turn. Pending final figures, forecasts show that production would catch up to shipments starting in April as both indices reach 11 million square meters, with production then exceeding shipments beginning in May. The new movement starts as the industry ramps up for the higher demand anticipated in 2H13.
For all the vicissitudes of the market, panel manufacturers need to continually negotiate a delicate balancing act¡ªbetween making sure there is enough inventory, and preventing the inventory at hand from ballooning and crossing into dangerous oversupply. A potent weapon in their arsenal is to turn the screws on production, intentionally limiting manufacturing capacity in fabs, while continually shipping out panels taken from both current assembly and leftover inventory in their possession. Constant vigilance is required in an industry where oversupply is usually the norm, with panel manufacturers always striving to perfect their game.
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