TV Panel Prices Weakening Further?
The art of estimating panel prices is not an easy one. Data can come from a wide variety of places including panel producers themselves, distributors, and a variety of sources that profess to have access to such hard data, but in most cases there is quite a bit of variation between the data and therefore averages are the best solution. Some of the discrepancies come from the almost infinite variations in panels, particularly monitor and notebook panels, which makes direct price comparisons quite difficult. There is less variation in TV panels however and TV panel pricing, while not a perfect science by any means, is a bit easier to sort through, and given that TV panel production still represents a significant portion of LCD display capacity and even more of revenue, price movements in TV panels are significant indicators.
We have already noted the weakness in TV panel prices twice this month (8/6/21, 8/23/21) and have indicated our belief that TV panel prices were destined to correct in previous months, so we continue to monitor data on TV panel prices to see if the drop in September will be greater, the same, or lesser than in August. Again with the disclaimer that variations in panels can have an effect on price comparisons, it seems that smaller TV panels (32”/43”) are under more price pressure now than they were earlier in the month, which will put more price pressure on Chinese panel producers who are the largest suppliers of such panels to the TV set industry. With IT panel pricing expected to be flat, panel producers will see additional margin erosion in September, particularly those that supply emerging markets where smaller size TVs are more common. We expect BOE and LG Display to be the most affected considering external inventory levels for smaller TV panels.
We have already noted the weakness in TV panel prices twice this month (8/6/21, 8/23/21) and have indicated our belief that TV panel prices were destined to correct in previous months, so we continue to monitor data on TV panel prices to see if the drop in September will be greater, the same, or lesser than in August. Again with the disclaimer that variations in panels can have an effect on price comparisons, it seems that smaller TV panels (32”/43”) are under more price pressure now than they were earlier in the month, which will put more price pressure on Chinese panel producers who are the largest suppliers of such panels to the TV set industry. With IT panel pricing expected to be flat, panel producers will see additional margin erosion in September, particularly those that supply emerging markets where smaller size TVs are more common. We expect BOE and LG Display to be the most affected considering external inventory levels for smaller TV panels.
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