Taiwan Panel Makers Brace For Slow Sales In December

Taiwan-based flat panel makers are expected to see their revenues continue to drift downward in December due to dwindling demand and falling panel prices, according to industry sources.

The pace of decline for panel prices has become more evident since November reflecting the end of seasonal demand, said the sources.

Additionally, the lackluster TV sales during the Double-11 shopping festival in China is likely to further undermine demand for TV panels from TV vendors, accelerating the falls of panel prices in December, the sources added.

Online TV sales during this year’s Double-11 festival totaled 2.6 million units totaling CNY6.4 billion (USD 929 million), down 10 percent and 22 percent, respectively from a year earlier, according to China-based All View Consulting (AVC). Besides, offline sales were also down 5 percent in unit sales and 8 percent in sales value.

For the first half of December, prices of 32-inch panels are likely to dip to USD 43 from the previous USD 45; those of 39.5 and 40-inch models will drop to USD 71 from USD 75; other sizes including 43, 50, 55 and 65-inch will fall by USD 3 on average, the sources estimated.

AU Optronics (AUO) has announced its consolidated revenues for November reached NT$25.75 billion (USD 834.69 million), down by 2.8 percent on month and 6.0 percent on year. Year-to-date revenues totaled NT$282.78 billion, decreasing 10.2 percent from a year earlier.

Innolux saw its revenues decrease 4.4 percent on month and 12.9 percent on year to NT$23.8 billion in November, affected by reduction in panel prices and seasonality, the company said.

The company’s shipments of large-size panels totaled 10.89 million units, up 3 percent sequentially; those of small- to medium-size panels reached 17.46 million units, down 11.7 percent.

For the first 11 months of 2018, revenues amounted to NT$255.84 billion, decreasing 15.3 percent from a year earlier.

Chunghwa Picture Tubes (CPT) and HannStar Display saw significant setbacks in their November sales due to weak demand for small- to medium-size panels from the handset sector.

CPT posted revenues of NT$1.356 billion for November, down 10.7 percent on month and 55.5 percent on year, as shipments of small- to medium-size panels declined 6.9% on month to 9.37 million units, and large-size panels dropped 39.8 percent to 80,000 units.

HannStar Display saw its revenues ebb 16.3 percent on month and 43.9 percent on year to NT$1.116 billion in November, although small- to medium-size panel shipments edged up 11.7 percent to 52.77 million units and large-size panel and own-brand panel shipments surged 140.9 percent to 109,000 units.— Digi Times

Share this:

Leave a Reply

Stay Updated on TV Veopar Journal.
Receive our Daily Newsletter.