IHS says LCD TV panel inventory rising to excess level
IHS has reported weeks of LCD TV panel inventory held by suppliers are set to increase to 5.0 in August, up from 4.9 in July and 4.8 in June. The last time the inventory reached this level was January 2012.
Figure 1 below presents the IHS forecast on weeks of inventory for LCD-TV panels.
“LCD TV panel inventory is entering into above-normal territory in July and August,” said Ricky Park, senior manager for large-area displays at IHS. “Stockpiles are on the rise because of a delay in economic recovery for many areas of the world, along with growing uncertainty regarding domestic demand in China. The combination of a glut in panels and weak demand will cause price reductions to accelerate in the third quarter compared to the second.” Further market study points disclosed by IHS includes: Average LCD TV panel prices are forecast to decline in a range from 3 to 6 percent in the third quarter, compared to a 1 to 2 percent decrease in the second quarter. TV demand remains weaker than expected—not only in the developed markets such as North America and Europe but also in emerging markets. Sino subsidy suspension Panel inventories in China are on the rise due to a mix of industry and government factors. For one, Chinese TV brands overstocked panels in the first ha...
“LCD TV panel inventory is entering into above-normal territory in July and August,” said Ricky Park, senior manager for large-area displays at IHS. “Stockpiles are on the rise because of a delay in economic recovery for many areas of the world, along with growing uncertainty regarding domestic demand in China. The combination of a glut in panels and weak demand will cause price reductions to accelerate in the third quarter compared to the second.” Further market study points disclosed by IHS includes: Average LCD TV panel prices are forecast to decline in a range from 3 to 6 percent in the third quarter, compared to a 1 to 2 percent decrease in the second quarter. TV demand remains weaker than expected—not only in the developed markets such as North America and Europe but also in emerging markets. Sino subsidy suspension Panel inventories in China are on the rise due to a mix of industry and government factors. For one, Chinese TV brands overstocked panels in the first ha...
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