As LCD TV vendors are expected to adjust panel inventories in July-August, their procurement will decrease and consequently the global supply of TV panels may exceed demand in the first half of the third quarter, according to Taiwan-based sources.
The adjustment could affect TV panel prices due to the imbalance between demand for LCD TVs in the market. Such an imbalance occurred back in 2012 when LCD TV panel shipments reached about 230 million units globally while LCD TV shipments were around 203 million units.
Additionally, there was a 22% difference between the amount of TV panels produced and TVs shipped in the first quarter of 2013, which is pushing players in the TV and TV panel industry to make adjustments.
The sources added that LCD TV vendors are adjusting shipments due to an expected slowdown in demand in the China market during June and July 2013 as a result of subsidies provided by the China government that provide funding for LCD TV purchases coming to an end in May. However, shipments are likely to pick up during the October 1 holiday period.
LCD TV panel prices are expected to drop 1-2% in June, with 32-inch open cell units expected to be priced at US$98 and 46-inch Full HD LED edge-lit units at US$342.
Vendors to adjust LCD TV inventory in 3Q13
Photo: Michael Lee, Digitimes, June 2013
Article translated by Alex Wolfgram
