TrendForce: Global large-size panel shipments increase 3.4% in June; Korean makers surpass Taiwanese makers in 4K TV panel share

Global shipments of large-size panels reached 71.78 million in June 2014, up 3.4% on month. TV panel shipments reached 20.95 million, up 0.6% on month, while LCD monitor panels slipped 1.4% to 13.48 million largely as increased demand for TV products pushed down demand for monitors. Notebook panel shipments meanwhile reached 16.29 million, down 3% on month, and tablet panel shipments reached 21.05 million, up 16.2% on month, according to WitsView, a subsidiary of Taiwan-based market intelligence firm TrendForce.

WitsView Senior Research Manager, Jeffy Chen, said TV panel demand in particular remained steady during the month, and increasing panel prices have led vendors to restock inventories with various sizes.

Moving into July 2014, large-size panel shipments are expected to drop 6-8% as various China-based vendors slow down procurement. This will lead to a 3-4% decline in overall TV panel shipments while LCD monitor panel shipments will witness an 8-9% decline. As smartphone demand rises, notebook panel shipments meanwhile will decline 10% in July and tablet panel shipments will see an on-month decline of 7%.

WitsView also said that Ultra HD (4K) TV panel shipments were on par with its predictions during the second quarter of the year, reaching 4.47 million for a total of 6.27 million in the first half of 2014. The penetration rate for Ultra HD TVs witnessed an increase from 3.2% in the first quarter to 7.2% in the second quarter for an overall 5.3% rate during the first half of 2014. Chen noted that in 2013 Taiwanese panel makers held a 76% market share in overall Ultra HD TV panel shipments but that the percentage dropped to 54% in the first quarter of 2014 and further to 43% in the second quarter due to increased competition from Korean panel makers.

The Korean panel makers in fact surpassed Taiwanese panel makers’ share in the second quarter at 49% due to product strategy adjustment such as offering a wide variety of solutions ranging from 40, 42, 48, 49 and 50 inches in addition to 60Hz RGBW solutions as well as reduced 3D functionality in order to save costs and reduce end-market pricing. The Korean makers also focused on production of high-end units sized 55-inch and above, which in turn, gave makers a variety of solutions to meet diverse market demand. The strategy successfully pushed Korean makers to enter the supply chains of China’s top six major TV vendors and LG Display’s 49-inch Ultra HD TV panels were used in China-based Xiaomi TVs, added WitsView.

Chart 1: TFT-LCD Panel Shipment in Jun-14 (K units)