TV panel prices still face huge pressure in 2HDec due to inventory issues, according to WitsView

Taipei, December 22, 2008---According to WitsView’s market survey, mainstream IT panel prices fell by 2-4% ($2-3) in 2HDec, while TVs dropped by 7-11% (about $20-30).
　
"The aggregated panel shipments of the three main applications fell by 23.7% MoM in November. This marked the second consecutive monthly decline. Although panel makers have drastically reduced their utilization rates, the pressure arising from the year-end inventory accounting and persisting price declines remains," said WitsView analysts.
　
Next year there will be fewer working days in January, due to the New Year and Chinese Lunar New Year holidays. Some of January’s panel demand may be moved up to December, thereby easing some of the panel makers’ pressure. Nevertheless, intense price competition is still being conducted, where unreasonable price quotes can sometimes be seen, especially in the TV panel segment. Meanwhile, with monitor panel prices already dropping to the variable cost level, panel makers are adopting a by-order manufacturing approach. Finally, the large-sized NB panel price fell further in 2HDec, due to the aggressive netbook promotion packages offered by telecom companies.

About WitsView

Founded in the year 2004, WitsView, a subsidiary brand of DRAMeXchange, is composed of a team of TFT-LCD industry experts. The research field covers the development and market trend of upstream components, mid stream panels and downstream system integrators and retailers.
For more about WitsView, please visit www.witsview.com