Price Overview, 1H of March, 2008

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2008-03-06 08:31

Taiwan--(뉴스와이어)--As the market enters into March, panel makers are starting to adopt a more aggressive pricing strategy. As predicted by WitsView, panel makers are trying to create a setting conducive for the market to rebound in 2Q08. Based on our current observations, with the number of working days returning to normal in March, panel shipments are expected to return to January's levels. As downstream clients kept a close eye on their inventory levels after the market entered into the traditional weak season in the first quarter of 2008, there is currently no serious glut. Coupled by persisting strong shipments at the channel side, the market demand in Q1 have been stronger-than-usual. Meanwhile, given expectations of panel prices rising again in Q2, an earlier-than-usual inventory pull-in in Q1 has helped consume the high panel production output, as panel makers maintained a high glass substrate input ratio. Thus, in March, the rate of decline in the PC segment should be more moderate. As a matter of fact, a tight supply may be seen for some monitor sizes. Speculations have also been floating around that some panel makers have already started to sell their panels at a higher price.

In the TV panel segment, sales of the 40" and above have been weaker than originally anticipated, especially in the China region. The inventory of local TV brand vendors has risen, due to weak TV sales, in contrast to the well-known international brand makers. In addition, given Sharp's continued G8 capacity expansion and Samsung's second G8.5 line entering mass production in 2H08, the likelihood for an oversupply to occur has risen. Meanwhile, to boost demand, some Tier 1 TV brand vendors have drastically cut their set prices, which will bring forth even bigger price pressures. WitsView believes the 40" and above will see a huge price adjustment during March. As for the 32" and 37", thanks to the stable demand, prices have stayed flat for quite some time now. However, as the G8/G8.5 is strategically being used to produce the 32", and CMO begins operating its new G6 line, signs of an oversupply are surfacing, as well. Finally, although production of the 37"is decided by the G6's capacity allocation, amid considerations of the long-term cooperative relationships with clients, panel makers will likely reasonably adjust their price levels.

About WitsView

Founded in the year 2004, WitsView is composed of a team of TFT-LCD industry experts with many years of invaluable experience. Headquartered in Taiwan, which is the major focal point of the global IT industry supply chain, the research field covers the development and market trend of upstream components, midstream panels and downstream system integrators and retailers.

To know more about WitsView, please visit: www.witsview.com

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