September 27, 2006
LCD prices continue to increase in response to growing demand as we move into the 4th quarter. TV panels continue to lead the recovery after a strong start in the 3rd quarter. Industry experts are predicting stronger sales and higher prices for LCD panels which may carry into 2007, as reported in publications such as WitsView and iSuppli. Panel prices across the board are expected to increase 3%-5% in October, especially the notebook panels, which have not been under as much upward pressure as monitor and TV panels have been in recent months. Monitor panels, specifically 17” and 19" sizes, are still on allocation, resulting in continued upward pricing pressure. Overall, the industry is expecting a 10.9% grow in unit shipment for the 4th quarter of 2006.
Monitor
The 17” and 19” monitors are still the more demanded sizes. Although the prices have not changed in the 2nd half of September, they are expected to increase for the month of October by at least 5%, according to industry reports. Popular models include LTM170E8-L01, Samsung’s mainstream 17” monitor panel, and M190EG01, AU’s top selling 19” monitor panel. Larger sizes are in demand as well, such as LTM201U1-L01, as there is more and more consumer demand for larger desktop monitors.
Notebook
The consensus amongst industry pundits is to expect a 3%-5% price increase for notebook panels in October. Over the past 3 months, notebook panel pricing has remained linear as most factories have gradually depleted excess stocks. With inventories reaching parity with demand, a healthy anticipated demand in the 4th quarter, combined with the transition to larger, 16:9 viewing ratio (15.4” plus panel size), a price increase is a sure bet. As the market has been transitioning to a 16:9 viewing ratio product Horizon has been seeing service demand split between 15.4” and 15” sized panels and expect the trend to move towards the larger viewing format. In turn putting upward pressure on pricing.
Industrial
Industrial sectors have behaved as stable as they always have. In a time where all the attention is focused on TV, monitor, and notebook panels, the industrial market behaves much like a quiet bystander with little news to highlight. It is worth mentioning that the demand for Toshiba LTM08C351 has resurfaced in the recent weeks. This model is being phased out and replaced by LTM08C351S, the RoHs version of the same panel. The market prices for the non-RoHs version are increasing as they become more scarce. Demand for Sharp panel LQ057Q3DC12 has quelled as Sharp has been advising its customers that it will be making deliveries.
