Market observers in the panel industry are holding conservative views for large-size panel growth in 2013 due to the upcoming release of Sharp and Foxconn Electronics' 60-inch LCD TV and rising popularity for small- to medium-size panel products among consumers.
The reported 60-inch TV is estimated to be priced as low as US$999 and will most likely cause other TV vendors unable to compete as they will not have the cost and supply chain advantages Sharp and Foxconn possess. The observers estimate that most consumers will consider the two companie's LCD TV as a result, with other TV vendors and their panel providers left to dry in terms of large-size panel profits.
The 60-inch LCD TV is expected to be released in the fourth quarter of 2012, added the observers.
The joint efforts by Sharp and Foxconn are expected to spark a price war in the large-size TV market, which will also drive down panel prices and cause panel makers to make even less profit from large-size panels. Affiliated supply chains whether it be backlighting module makers or LED chip makers are expected to suffer as a result as well, said the observers.
The observers added that small- to medium-size panel products such as smartphones, tablets and notebooks are continuing to grow in popularity around the world and are replacing the need for TVs as a whole as consumers are looking to become more mobile.
The output value of small- and medium-size products is expected to rise 10% on year in 2013, said the observers.
The rise of small- to medium-size products are expected to push down large-size panel prices
Photo: Michael Lee, Digitimes, October 2012
Article translated by Alex Wolfgram
