Faltering confidence in consumer and corporate segment drags down TV panel prices further in October, says WitsView

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2008-10-06 18:57

Taiwan--(뉴스와이어)--According to WitsView’s 1HOct panel price survey, IT panels remained stable as TV panels continued to fall by 2~3 per cent ($5-10). With Taiwan’s panel makers substantially reducing their utilization rates, the market’s panel inventory continues to be digested. The original projection of panel prices stabilizing during October after the sharp panel price fall in 3Q08, seems unlikely now. Based on the current market conditions, the panel price pressure is still present, thus putting the panel makers under huge financial burden. In the TV segment, panel makers are currently trying to secure orders aimed for the year-end Christmas sales. Although the TV panel price has also been trending downwards, which has reached near the cash cost level; it is TV products that will be the main contributor to the TFT-LCD industry’s growth momentum in 4Q08. The end market demand could be stimulated by further reductions in the retail price. "For October, the TV panel price is still expected to fall," said H.P. Chang, head of WitsView's TFT-LCD research team..

After October, the TFT-LCD industry will once again enter a traditional slow quarter. Coupled with the global economic problems, and the fact that nine new production lines are set to come online, the possibility of a market oversupply is quite high. Aside from the likelihood of Taiwan’s panel makers continuing their production cutbacks in 4Q08, it is suggested that the Korean suppliers should carefully weigh on this matter as well. Moreover, everyone should also consider delaying the ramp up schedule of their new production lines. If everything remains on schedule, no one will be immune from the downturn.

웹사이트: http://www.witsview.com