The oversupply ratio of LCD monitor panels is expected to widen in the first quarter of 2006, as the period is a traditional slow season for the segment and panel supply will continue increasing, according to Chunghwa Picture Tubes (CPT).
LCD monitor panel suppliers will start to face stronger price-cutting pressure this month due to seasonal effects, the company said.
The ratio of oversupply in the first quarter of next year will vary according to the condition of LCD TV demand, CPT said. If LCD TV demand remains strong, the newly ramped capacity at panel makers will be consumed and the oversupply ratio of LCD monitor panels will not be as significant as forecasted, the maker indicated.
Dell has been adjusting its LCD monitor inventory since late last month, with the adjustment ratio reaching 20-30%, as its previous forecast of demand this quarter was overly optimistic, CPT indicated.
Nevertheless, the range is still within acceptable limit and other customers of CPT do not have inventory as high as Dell’s (one to two weeks higher than the same period before), the panel maker said.
Article translated by Carrie Yu and edited by Michael McManus
