Prices Increase on LCD Panels for Q3, But For How Long?
When looking to acquire LCD panels for your business it is important to understand the current business environment of the LCD manufacturing companies. Much like hard drives several years ago saw shortages and price increases (due to outside natural disasters) LCD panels are also seeing shortages. However, the current LCD shortages are due to an engaged market and increased demand. This can create difficulties as you try and purchase the materials your company needs. But if step back and take a look at the current market and what is driving you can plan for the future accordingly.
The current market is being driven by several factors which is making it difficult for manufacturers to keep up with demand. LCDs have become further integrated into existing technology. The increased market size of smartbooks and other portable computing devices has driven an increased need in LCD screens. Also the appliance industry has undergone several subtle technological shifts with smart devices requiring LCD panels becoming far more common. While manufacturers are increasing production it will take time for this to be fully integrated. There is also a predicted increase in niche and specialized LCD products as the market continues to grow.
Current Q3 Forecasting
The Q3 is seeing supply for LCD panels decrease as demand continues to increase. These demand drivers include appliances, computers, and televisions. Industry experts note that this continued demand will drive supply limits down by 9.2%. If you’re looking to buy LCD panels in certain sizes you may encounter shortages or difficulties in acquisition. Sizes noted for shortages include 19.5W, 21.5W, and 23.6 inches and have been observed since June as product demands further increased. Pricing however, has remained stable showing either stability or slight increases depending on size. While price increase due to shortages remain a possibility they are not a guarantee.
Industry experts predict this forecast trend will continue into 2015. While manufacturers will properly adjust for the Q4 on the backs of market demands holidays sales will have an effect on existing LCD stock. Also industry experts predict that market demands may exceed supply growth. Some figures point to a noticeable gap with demand growing 7.9% versus 4.5% in production/supply growth. While manufacturers will increase production to meet demands this is a change that takes to implement. LCD components shortages may also be an issue. However, there are positive trends as well. Competitiveness in the market along with further integration of LCD technology in several product lines will drive increased production.
As you can see LCD panel shortages look to continue in Q3 and will carry forward into 2015 as the market races to adjust to increasing demands. Prices may see a slight increase depending on the type of LCD panel you need and the quantity required. However, industry insiders do not predict this as being severe, nor do they predict price increases across all product lines. As it appears the greatest difficulty will be in product acquisition as shortages may impede the ability to make large bulk purchases. In such a case the need to look into other distribution channels or make modifications to ordering methodology may be in order.