Although market research firm Displaybank recently said panel prices may rebound before September, panel makers said it remains to be seen whether panel prices will rebound.
Displaybank recently forecast that panel prices will bottom out between August and September, as panel makers will begin full-scale cuts of production from July while demand for TVs and IT products will seasonally pick up in the second half of the year. The expectations are on the assumption that production reductions will be maintained at least for three months, noted the research firm.
However, panel makers indicated that it will be difficult to realize the forecast since Samsung Electronics had said it will not cut its LCD production. With only makers including LG.Philips LCD, AU Optronics (AUO), Chi Mei Optoelectronics (CMO) and several second-tier panel makers in Taiwan cutting production, it will not be enough to help panel prices to rebound.
Both DisplaySearch and WitsView Technology, on the other hand, said there is no room for further panel price cuts now, as the ASPs (average selling prices) of panels for PC applications have dropped below the production costs of first-tier panel makers. With makers reducing production and back-to-school demand hitting in July, prices for PC-use panels will stabilize. It is not unlikely that the ASP will even rebound, the firms indicated.
Nevertheless, both market research firms and panel makers agree that TV panel prices are not likely to rebound in 2006. Prices for 32-inch panels will continue falling, but within a limited range, as the prices have approached makers' cost levels. The price drop for 37-inch panels may be less significant in the third quarter, sources said.
Prices for 17- and 19-inch monitor panel prices have fallen significantly and the prices will eventually stabilize and even pick up US$1-2 in August, according to Sweta Dash, an analyst with iSuppli. However, TV panel prices will continue falling throughout 2006, Dash indicated.
Article edited by Michael McManus
