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TV Panel Prices to Continue Historically Large Reductions
December 03, 2018

Large-area LCD flat panel prices (mainly TV panels) are expected to continue to fall in December due to an oversupply resulting from capacity ramps by China-based flat panel makers. Additionally, slower inventory build-ups for panels from TV brands for the November-December period also create excess supply:

• Prices of 32-inch TV panels dropped US$4 on month to US$48 per unit on average in November and will continue to fall by US$3 to US$45 in December, according to China-based Sigmaintell Consulting.
• Prices for 65-inch TV panels have remained relatively stable recently, but quotes dipped to US$238 in November and are expected to dip to US$235 in December, said the consulting firm.
• Prices of small- and medium-size panels will also experience lower levels in November-December due to slack demand for smartphones and tablets in the end markets, said the sources.

Looking into 2019, the flat panel industry could see the supply of large-size panels outpace demand by 6% in the first half of 2019 compared a 2.5% seen in the second half of 2018, according to a Chinese-language Economic Daily News (EDN) report, citing data from Morgan Stanley. While the US investment bank has cut its earnings forecasts for most panel makers in China and Taiwan to reflect increased oversupply pressure, it did raise its earnings estimates for AUO and Innolux. The bank raised its 2018-2019 earnings forecasts for AUO by 82% and 296%, respectively, based on the company's diversification plans and efforts to upgrade its products and technology. The bank also raised Innolux's earnings prospects by 9% and 2% for 2018 and 2019, respectively.