TrendForce: Monitor Panel Prices Drop Amid Low Season

Few panel applications have been free from the consumer electronic markets cooler season effects, with notebook panels early price drop reflecting the seasonal transition. Another major IT application monitor panels prices also slid, due to off-peak season effects. TV panel has been the only application where prices have remained unaffected, with certain TV panel size prices even ascending. 

“Global panel glass input capacity  is estimated to drop 5-7% in 1Q15 as panel manufacturers start to implement annual maintenance in different generation production fabs,” said Eric Chiou, Senior Research Director at WitsView, a research division of TrendForce. Although, IT panel demands have markedly eased, there have been few fluctuations in TV panel demands. However, frequent labor shortages during Chinese Lunar New Year is expected to further diminish panel production volume. WitsView projects under the prerequisite of demand support and supply adjustments, the panel industry might show stronger than expected performance in 1Q15. 

TV panel price quotes inched up to US $1-3 in December, but IT panel prices remained low and face price decline pressure 

“TV panel demands are not completely exempt from the low season effect,” said Chiou. For Chinese TV brands, there have been signs of gradually easing panel procurement following the end of domestic and export market peak season. However, the impact on TV panel prices was cushioned by manufacturers’ healthy panel inventory levels, minor order volume adjustments in December, and Korean TV brands unchanging strong procurement demands. Besides steady market demand for 32” TVs, another trend observed has been large TV sizes benefiting from market demands including for 40”, 48” and 50” products, which all reported monthly price surge of US $1-3. 

On the other hand, monitor panels have been affected by imbalanced supply and demand. “Due to notebook panels easing demands and TV panel adjustments for 55” and above sizes, some panel production capacity have been transferred to monitor panel production that has in turn raised pressure on monitor panel suppliers,” said Chiou. Impact from low season adjustments on monitor demands have been evident, and can be observed among different panel sizes. The 19.5W monitor panel, which soared the most over the last few months is under greatest pressure to slash prices. Prices are estimated to drop US$ 0.5-0.7, while TV sizes below 24” are projected to reach US $0.5. Large monitors 27W and above are still preparing to enter the market with low pricing strategies, and expected to decline about US $1 in December 2014. 

Notebook panel prices have remained weak, and price falls have been aggravated in December as panel manufacturers are eager to clear out inventory. The 15.6” notebook panel which consists nearly 50% of market sales is under the most pressure to lower prices. WitsView projects price falls for 15.6” will be between US$ 0.6-0.8. Despite 14” sales share shrinking to 20-25%, the product has maintained its leading market position, and clients low price negotiations are still mainly targeting this product. Prices for 14” notebooks fell in December to about US$0.5-0.7. Other niche size products including 11.6” and 13.3” price declines have been within the range of US $0.3-0.4.