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The size category that currently makes up the largest share of the LCD TV panel shipments is the 32 inches. Since the second half of 2015, quotes for this size have been on a slide due to a generally weak market. Furthermore, the price decline of the 32-inch TV panels has put pressure on prices and margins for panels of other sizes, thus becoming a heavy burden on the suppliers.
According to the latest large-size panel report by WitsView, a division of TrendForce, TV panel shipments arrived at 20.82 million units in April, translating to a 7.2% drop from March and 5% drop from a year ago. Branded TV set vendors began to replenish their inventories for the Chinese Labor Day sales earlier in March. This resulted in weaker panel shipments for April, when vendors had just about completed this phase of inventory activities.
With Apple almost certain to use AMOLED for the future models of iPhone series, both panel makers and rival smartphone brands worldwide have also entered the race to invest in small- and mid-size AMOLED panels. The global production capacity of small- and mid-size AMOLED panels by area is projected to grow 16.5% annually to 5.9 million square meters in 2016, according to the latest data from WitsView, a division of TrendForce.
The display industry enters the second quarter of this year with some optimism as demand has picked up in response to the preparation for Chinese Labor Day sales. Still, panel makers are actively seeking ways to cut their costs further as the downward price pressure in the market has not diminished since the latter half of 2015.
Global shipments of LCD TV sets in the first quarter of 2016 totaled about 48.32 million units, according to the latest report by WitsView, a division of TrendForce. This figure represents a 20.9% quarterly decline and also a 6.3% year-on-year drop. In addition to first quarter being the off season in the U.S. and Europe, the uncertain global economic outlook and the saturation of the Chinese TV market have put significant pressure on the overall LCD TV shipments.
