Monitor panel prices stay flat in 1HJan, says WitsView

Taipei, January 7, 2008---According to WitsView's 1HJan price survey, mainstream TV and notebook panels continued to fall respectively by 2-6% ($5-10) and 4-5% ($2-3), while monitor panels remained stable.
　
"The panel production cutbacks in 4Q08 and 1Q09 will render the rate in the production cutbacks to sharply outpace the decline in demand, thereby helping to clear away the panel inventory. As the current panel prices are already lower than the variable cost (material + direct labor), panel makers have little incentive to take orders," said WitsView's analysts. After all, the more panels sold, the more cash outflow there will be. Downstream clients have also become aware of the limited room for additional price concessions from panel makers.
　
Moreover, with only roughly 15 working days in January, due to the Chinese Lunar New Year, the market advantage is starting to shift to the supplier side. Despite the offering of some rush orders, based on the current low utilization rates and ASPs, panel makers remain uninterested. Based on WitsView’s current market survey, there is a very strong likelihood to see monitor panel prices staying flat in January.

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