Panel pricing showing declines in June, says DisplaySearch

Panel pricing has continued to drop in June 2015. According to DisplaySearch, monitor panel prices have dropped over US$1 because there is still excess supply and monitor panel production is gradually increasing. Entering the traditional hot season, monitor panel production is less profitable as it is being squeezed by TV panels that come with higher premiums. In response to a rise in Ultra HD (4K) TV panel demand, the production of monitor panels will likely become a lower priority. In June, pressure on 21.5-, 23.8- and 27-inch prices is rather heavy because makers need to digest their current capacity before transitioning that capacity.

In terms of notebook panels, market demand is weak and consumers are waiting for Windows 10 and the Skylake CPUs to arrive, so notebook brand makers are yet give a clear view of the third-quarter 2015 market. They recently negotiated concession deals with component makers to lower set prices or offer a commission for channel sales that result from their promotions in the quarter, and notebook brands have prepared new models to catch up to consumer demand. However, notebook panel orders may remain flat in the third quarter. A few panel makers have already decided to lower utilization or shift capacity to other applications such as monitors or industrial products. This will help keep panel prices from dropping sharply. However, prices on all notebook panel sizes are expected to drop over US$1 in June.

DisplaySearch added that for TV panels, 4K demand from the top global brands is increasing, but most TV makers have reported slowing demand. Some cut demand for June as well as their demand forecast for the third quarter to better control inventories. At the same time, they asked panel suppliers for price concessions. However, in June, panel makers are less likely to reduce prices on most TV panels, but they may drop them slightly. The exception is the 32-inch market, where there have been some special deals negotiated. Among the brands still demanding panels, there was a widening gap between panel purchasing quantities and TV set shipments in the first half of 2015.

Handset panel demand meanwhile has entered the traditional slow season, so demand has not improved in early June, and there continues to be pressure on mobile phone display prices. Most China smartphone brands are controlling inventory levels to ensure better half-year financial results in June, and this will have an impact on display demand. Prices on all the typical models are expected to drop in June by 1-2%.

The firm added tablet vendors have various tablet projects under development that are scheduled to launch in the second half of the year but that demand is still weak and prices are expected to drop another 2-5%.

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.