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Large Area Panel Price Upsurge Continues in All Categories
Panel prices continued to rise in January. TV panel prices, which have been rising precipitously came in up 4.0% with a monthly ROC less than any month since May of last year. ROC for TV panel price growth had steadied for the last two months of last year between 5% and 6% but was up less than 2% sequentially. In January notebook panel pricing increased by 3.1%, larger than any sequential increase in the last 10 months. Major brands are willing to pay higher prices for safety stock, to make sure they have product to sell into the Chinese New Year, and smaller brands, while struggling to find sourcing, have little choice but to pay even higher prices to obtain what they can to fill expected demand.
The same situation exists in monitor panel prices, which increased by ~5.0%, even with continuing shifts in panel capacity from TV (less profitable) to IT products (more profitable), with the fear of continuing component shortages driving the increase. Typically monitor panel price in ROC runs ~2% during the up part of a pricing cycle, so an increase of 5% is unusual and hints at the level of concern buyers have toward availability.
Panel prices continued to rise in January. TV panel prices, which have been rising precipitously came in up 4.0% with a monthly ROC less than any month since May of last year. ROC for TV panel price growth had steadied for the last two months of last year between 5% and 6% but was up less than 2% sequentially. In January notebook panel pricing increased by 3.1%, larger than any sequential increase in the last 10 months. Major brands are willing to pay higher prices for safety stock, to make sure they have product to sell into the Chinese New Year, and smaller brands, while struggling to find sourcing, have little choice but to pay even higher prices to obtain what they can to fill expected demand.
The same situation exists in monitor panel prices, which increased by ~5.0%, even with continuing shifts in panel capacity from TV (less profitable) to IT products (more profitable), with the fear of continuing component shortages driving the increase. Typically monitor panel price in ROC runs ~2% during the up part of a pricing cycle, so an increase of 5% is unusual and hints at the level of concern buyers have toward availability.
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Barry Young
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