WitsView: CMI's 39-inch TV panel popular among China TV set makers

According to the latest survey report on shipment of large-sized panel in October published by WitsView, a research division under TrendForce, the total large-sized panel shipment in October has reached 59.32 million units with MoM regression of 2.4% and YoY growth of 11%.
 
WitsView research manager, Jian-An Chen, indicates that in Q3, Korean panel makers have been supported by stable customer structures, as a result, the Taiwanese panel makers’ utilization rates have been relatively low during this wave of economic downturn, directly impacting their market shares. In Q2, the ratio between market shares of Taiwanese and Korean panel makers was 40%:51%, by Q3 it has come to 38.3%:53.9%. In October alone the gap has widened to 35.8%:55.5%. The market share of Taiwanese panel makers is going to be further constricted in the future with the emergence of China panel makers, such as BOE/CSOT/CEC-Panda.

Besieged by both sides, Taiwanese panel makers will not only focus on the promotion of low cost direct type LED TV product for TV business but also create new battlefield with the development of 39-inch and 50-inch new TV panel sizes: in the hope to expand market share with differentiated product advantages in order to relieve the pressure of excessive production capacity.

After the sales promotion during National Day Holidays in Mainland China, China TV brands have begun small scale restocking activities. In addition, global TV brands have also begun their stocking activities in response to year-end hot season promotions in Europe and the US. Therefore the total shipment of TV panel in October has come to 18 million units with MoM growth of 4%. In the October shipment report demonstrates the first time that CMI begins shipping 39-inch TV panels to customers. With size close to 40-inch product, the 39-inch TV panel price is actually nearing the original 37-inch panel price. The double incentives of panel and end product prices have attracted major China TV brands to promote in next Lunar New Year holidays.

The performance of IT market remains flat with monitor panel shipment at 15.27 million units with MoM regression of 4.1%, NB panel shipment at 15.24 million units with MoM regression of 1.6%. With Apple starting to control iPad2 inventory in Q4, the orders for 9.7-inch panels among 3 major panel suppliers (Samsung/LGD/CMI) have been reduced, resulting in an overall Tablet PC panel shipment of 8.65 million units with MoM regression of 9.5%. Netbook panel shipment has come to 2.14 million units with MoM regression of 14.5%.

TFT-LCD Panel Shipment in Oct-11 (K units)

Source: WitsView