In first-half 2013, global panel makers saw shipments rise due to China's Labor Day holidays in May. Industry sources predicted sales growth of FPD TVs in China during the May Labor holidays would show an on-year increase of 5-10%, but market research institutes have reported the growth rate was around 12-13% on year.
Demand for large-size LCD TVs has been strong and panel makers have also been optimistic about Ultra HD TV panels because the products have higher profit margins.
Retail prices of 55- and 65-inch Ultra HD TV that fit the Consumer Electronics Association (CEA) standards in North America by tier-one makers are usually 200-250% of the retail prices of mid-range and high-end models of the same size. Most Ultra HD TVs by China-based brands do not fit the CEA standard but retail prices are still 110-130% compared to the retail price of other models of the same size.
Due to many factors, LCD TV panel suppliers and ODM firms are optimistic about 2013 performance. In addition to steady sales of TV panels, panel makers have been seeing strong demand growth of small-size panels for mobile phones in China. The strong demand has been causing a shortage of supply.
However, the market is quite different for PC panel makers, according to the recent financial performance of leading monitor ODM firm TPV Technology. The weak sales of PCs have been affecting monitor ODM firms in the first quarter of 2013. The market is also concerned about the sales growth of tablets. Sales of monitors and PCs are positively correlated, according to TPV, and in the first quarter, monitor demand dropped 20%.
Firms in the supply chain hope demand for notebooks with touch features will rise and panel makers such as AU Optronics (AUO) and Innolux have been eager to develop integrated touch panels.
Taiwan-based panel makers have been optimistic about 2013 due to steady TV panel sales and volume production of Ultra HD high-end TV panels. However, China- and South Korea-based panel makers may begin capacity expansion plans in 2014, meanwhile, the ASP of entry-level and mid-range TVs continues to drop, hence Taiwan-based firms may enjoy shipment growth in 2013 but are likely to face more challenges in 2014.
Article translated by Jackie Chang
