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Taiwan Panel Makers Lose Market Share in Small/medium Panel Sales
While being rewarded with higher ASPs for monitors, notebooks and TVs, AUO, Innolux and HannStar are now being hit by serious market share losses in their small/medium business by two trend debilitating competitive trends; smartphone OEMs are shifting more of their demand to OLEDs and the Chinese LCD panel makers are lowering the ASPs below cash cost to retain as much market share as possible. As a result, Taiwan's shipments of small/medium LCD panels are expected to fall 9.5% sequentially and 3.9% on year to 174 million units in Q121 according to DigitTimes Research estimates.
The basic market issues are compounded by shortages of some critical components such as driver ICs and shortened workdays in the first quarter due to the Lunar New Year holidays will weigh down makers' sequential shipment performance in the quarter. But shipments of small/medium panels decreased 25.3% sequentially and 17.8% on year to 193 million units Q420, even as total smartphone shipments grew 4.3% Y/Y and notebook shipments were up 28.3% Y/Y. In 2021, Taiwan's small/medium LCD panel shipments are likely to fall 6.8% Y/Y to 790 million units as smartphone-use AMOLED panels gain momentum, eroding the market share of LCD.
While being rewarded with higher ASPs for monitors, notebooks and TVs, AUO, Innolux and HannStar are now being hit by serious market share losses in their small/medium business by two trend debilitating competitive trends; smartphone OEMs are shifting more of their demand to OLEDs and the Chinese LCD panel makers are lowering the ASPs below cash cost to retain as much market share as possible. As a result, Taiwan's shipments of small/medium LCD panels are expected to fall 9.5% sequentially and 3.9% on year to 174 million units in Q121 according to DigitTimes Research estimates.
The basic market issues are compounded by shortages of some critical components such as driver ICs and shortened workdays in the first quarter due to the Lunar New Year holidays will weigh down makers' sequential shipment performance in the quarter. But shipments of small/medium panels decreased 25.3% sequentially and 17.8% on year to 193 million units Q420, even as total smartphone shipments grew 4.3% Y/Y and notebook shipments were up 28.3% Y/Y. In 2021, Taiwan's small/medium LCD panel shipments are likely to fall 6.8% Y/Y to 790 million units as smartphone-use AMOLED panels gain momentum, eroding the market share of LCD.
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