May Panel Pricing
May display panel pricing continued to indicate a divergence between display panel types, with weakness in IT panel pricing (NB and Monitors) and mobile devices (tablets and phones), while TV panel pricing remained stable. As a reference point, TV revenue has been between 43% and 53% of panel producer totals in recent quarters, so it carries significant weight in the overall sales picture for most large panel producers. As has been the case for much of this year, TV panel prices have remained stable, after seeing large increases last year. Panel producers have held TV panel pricing steady despite tepid demand, as capacity issues for certain TV panel sizes have given them the leverage they need to hold back pressure from set makers. That said, indications are that Chinese TV inventory has been rising, as holiday sales have been a bit less than expected, and we expect lower TV set targets to be announced from Chinese brands within the next 60 – 90 days. While this still will not force panel producers to lower prices, we would expect selective deals to be made for those set makers looking to offer discounts to consumers to move inventory in upcoming months.
On the IT side, panel producers have been a bit more flexible on price as high brand inventories reduced demand and panel producers have responded with lower prices for the most part, although notebook sales have improved a bit and helped to hold panel prices somewhat steady for the month. Tablets and phones however are facing a transition, as the new ‘bezel-less’ smartphones, particularly the Samsung Galaxy S8 line, have an 18:9 aspect ratio, different from the typical smartphone 16:9. The popularity of this new size has caught suppliers off guard and has left demand for the older panels less than expected, leading to the lower prices for both smartphone and tablet panels. While excitement for the newer panels will continue, there remains significant demand for the older aspect ratio panels from white box producers, and eventually the older panels will find a home, while demand for the newer panels (which are not yet included in pricing data) will increase along with pricing. We would expect published smartphone and tablet panel pricing to continue to decline this year, but if 18:9 panel pricing data becomes available, the aggregate will look far more normal.
On the IT side, panel producers have been a bit more flexible on price as high brand inventories reduced demand and panel producers have responded with lower prices for the most part, although notebook sales have improved a bit and helped to hold panel prices somewhat steady for the month. Tablets and phones however are facing a transition, as the new ‘bezel-less’ smartphones, particularly the Samsung Galaxy S8 line, have an 18:9 aspect ratio, different from the typical smartphone 16:9. The popularity of this new size has caught suppliers off guard and has left demand for the older panels less than expected, leading to the lower prices for both smartphone and tablet panels. While excitement for the newer panels will continue, there remains significant demand for the older aspect ratio panels from white box producers, and eventually the older panels will find a home, while demand for the newer panels (which are not yet included in pricing data) will increase along with pricing. We would expect published smartphone and tablet panel pricing to continue to decline this year, but if 18:9 panel pricing data becomes available, the aggregate will look far more normal.
LCD Average Panel Pricing - May 2017 - Source: SCMR LLC, Displaysearch, Witsview
TV Panel Pricing - 2016 -2017 - Source: SCMR LLC, IHS, Witsview
Tablet Panel Pricing - Source: SCMR LLC, Displaysearch, other
13 Month Mobile Phone Panel Pricing - Source: SCMR LLC, Displaysearch, other
Notebook Panel Pricing - Source: SCMR LLC, Displaysearch, other
Monitor Panel Pricing - Source: SCMR LLC, Displaysearch, other
RSS Feed