For notebook applications, at the end of May spot deals appeared in the market, except on custom models (sole sourced). Brands pushed prices down on mainstream notebook panels by at least US$1. Overall, prices will continue to drop in June because demand is still weak. The big notebook brands are adjusting inventory and set inventories remain higher than normal, especially in Europe and emerging markets. Also, the launch of Intel's Skylake platform has been delayed and the release of Windows 10 is unlikely to boost demand much because consumers already purchased notebooks a year earlier in reaction to the expiration of Windows XP.
Most TV makers meanwhile have reported slowing demand, but in early June panel makers have less intention to reduce prices on most TV panels. The exception is 32-inch because there are very few leading brands still ordering these panels. Among the brands still demanding panels, there is a widening gap between panel purchasing quantities and TV set shipments in first-half 2015. Based on these brands' aggressive purchasing volumes and forecasts, they will need to weight seasonality heavily toward the second half of the year. However, China TV brands are being cautious about production and cut panel demand by about 10% on quarter on average for the second quarter of 2015. Some panel makers are planning to offer China TV makers price protection on certain sizes. Several China TV makers expect to drop demand for 32-inch panels by 20-25% on quarter in the second quarter.
For handset panels, China smartphone market demand has been weak for months, putting pressure on display ASPs. A sufficient panel supply is another factor pushing down panel prices. By the end of May, most display ASPs had dropped significantly. Full HD display supply is sufficient, so Full HD module prices dropped the most. Bidding prices on 5-inch 720p total solutions (includes cover glass and lamination) are dropping quickly to win orders.
Some tablet panel supply capacity has been planned to switch to handsets in July due to increasing demand from the mobile market. However, mobile demand is not strong enough to fill all the empty tablet capacity. DisplaySearch said it expects a big decline in prices if tablet capacity is unable to be filled out, and tablet panel prices should remain flat in early June.
Tags: PCB manufacturer, PCB supplier, PCB assembly, PCB design, Multilayer PCB, HDI PCB, LED PCB, Automotive PCB, High Frequency PCB. Industry Control PCB, PCBA, PCB Samples.