WitsView, a division of TrendForce, reports that upstream LCD component suppliers based in China have significantly expanded their manufacturing capabilities through 2016 and will become stronger competitors against their international first-tier counterparts in 2017. As more advanced LCD panel fabs (Gen-8 and above) are being built in China and begin operation, local suppliers of materials and components such as glass substrates and polarizers are gearing up to fulfill their demand.
Shipments of LCD TV sets worldwide for 2016 are estimated to grow by 1.9% annually to around 220 million units, according to the latest analysis by WitsView, a division of TrendForce. At the start of 2017, the U.S. consumer market will be bumpy in the short term due to the results of the country’s presidential election. If the U.S. Federal Reserve decides to raise the key interest rates next year, domestic consumer spending will recover and the country will again play a major role in sustaining global TV sales. WitsView forecasts that global TV shipments for 2017 will reach 225 million units, up 2.5% compared with the prior year.
WitsView, a division of TrendForce, reports that the LCD panel market during this fourth quarter has witnessed strong demand as consumer electronics brands stock up for their holiday promotions. At the same time, panel makers are facing tighter supply for some upstream components. As upstream suppliers are less willing to make further price concessions, panel makers are constrained in their cost-cutting efforts. In general, the cash costs of LCD panels in the fourth quarter of 2016 have fallen by just 1~2% compared with the prior quarter.
Though panel shipments were strong in October, they represented a monthly drop from the much larger shipments in September. WitsView, a division of TrendForce, reports that October shipments of large-size panels (sized 7 inches and above, resolution at WSVGA and above) totaled 66.83 million units, down slightly by 2.4% compared with the prior month.
Global market research firm TrendForce has lowered the projected annual growth rate of smartphone production worldwide for 2016 to 2.5%. Though shipments from Chinese smartphone brands have been fairly strong, other international brands have suffered significant shipment declines, thus constraining the growth in the overall production.