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According to a survey done by a team of TFT-LCD experts, TV panel prices have continued to fall by two to three percent. The company is also forecasting a further price drop this month and may even reach the cost level.
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Based on current market conditions, the panel price pressure is still present, putting panel makers under huge financial burden as they are currently trying to secure orders aimed for the year-end Christmas sale.
Although the TV panel price has also been trending downwards, which has reached near the cash cost level; it is TV products that will be the main contributor to the TFT-LCD industry’s growth momentum in 4Q08. The end market demand could be stimulated by further reductions in the retail price.
Head of WitView’s TFT-LCD Research Team, H.P. Chang said that the TV panel price is expected to fall this month as well. He also mentioned that the TFT-LCD industry will once again enter a traditional slow quarter.
Coupled with the global economic problems, and the fact that nine new production lines are set to come online, the possibility of a market oversupply is quite high.
Aside from the likelihood of Taiwan’s panel makers continuing their production cutbacks in the 4th quarter, it is suggested that the Korean suppliers should carefully weigh on this matter as well. Moreover, everyone should also consider delaying the ramp up schedule of their new production lines.
If everything remains on schedule, no one will be immune from the downturn.
See: www.witsview.com
