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WitsView finds TV Panel Prices Facing Pressure
By
ChannelTimes Staff
Mumbai, May 6, 2008
The monitor and NB shipments grew respectively by 1.1% and 1.4% QoQ in 1Q08. However, according to a recent analysis by a team of TFT-LCD industry experts from WitsView, the growth happened due to an anticipated panel price rise, and not in response to a stronger end market demand. Thus, WitsView foresees - the monitor-price-increases that began in April have been moderate, and is expected to continue.
According to WitsView, given the downstream clients' sufficient NB inventory, and sales constrained by the shortage of relevant components, there is no pressing need of additional NB panels.
Yet, given their relatively high profit margins, panel makers hope to at least initiate a gradual increase. Unfortunately, the major downstream clients are still very resistant to any price rise. Based on WitsView's survey, NB panel prices will stay flat in 1HMay.
For TV panels, the weak seasonality resulted in shipments to drop by 10% QoQ. Despite the recent 4-day labor holidays in China, where a new wave of sales promotion is being conducted by both the local and international TV brands, along with the TV sales discounts in the North America market, the overall end market demand in 1HMay is still unclear. Panel prices are still under heavy pressure, where the drop in the above 40" will be more notable, informs WitsView.
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