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LCD Panel Demand Weakening, Says Analyst

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LCD Panel Demand Weakening, Says Analyst
[ Business]

Tech manufacturers are now gearing up for production runs of fall and holiday product launches. Those plans, however, have not translated to high demand for large-sized LCD panels, defined as those 7-inches or larger.

Analyst firm IHS is now estimating that the supply of large-sized LCD panels will exceed demant by 15.9% from July to September. The oversupply is predicted to be smaller than that seen during the second quarter, but is still described by IHS as “elevated.”

“This is the time of the year when LCD panel makers usually are ramping up production to meet holiday demand for televisions, notebook PCs, tablets and other consumer-oriented electronics,” said Ricky Park, senior manager for large-area displays at IHS. “However, the display industry is confronting the prospect of weak sales growth and a lack of visibility into future demand trends. With a combination of flagging economic conditions and the end of a popular television incentive plan in China, large-sized LCD panel supply is expected to overshoot demand by a higher margin than previously predicted.”

The glut of LCD panels, says IHS, is due to slow growth in demand for the products. Their estimates put global large LCD panel demand to rise only 6% during the third quarter. This at the same time that LCD panel manufacturers are, according to IHS, utilizing an ever-greater portion of their production capacity.

Part of the slow demand for LCD panels could stem from the contracting PC market. Shipments of notebook PCs in particular are dropping quickly, with tablet devices devouring the mobile PC market.

LCD Panel Demand Weakening, Says Analyst
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