Prices of large-size flat panels, mainly TV panels, are expected to continue to fall in December due to oversupply resulting from continued capacity ramps by China-based flat panel makers.
Additionally, slower inventory build-ups for panels from TV brands for the November-December period will also weigh down TV panel prices.
Prices of 32-inch TV panels dropped USD4 to USD48 per unit on average in November and will continue to fall by USD 3 to USD 45 in December, according to China-based Sigmaintell Consulting.
Although demand for 65-inch TV panels has remained relatively stable recently, quotes for this size of panels dipped to USD 238 in November and are expected to sag to USD 235 in December, said the consulting firm.
Prices of small- and medium-size panels will also be capped at low levels in November-December due to slack demand for smartphones and tablets in the end markets.
Looking into 2019, the flat panel industry is to see the supply of large-size panels to outpace demand by 6 percent in the first half of 2019 compared a 2.5 percent seen in the second half of 2018, according to a Chinese-language Economic Daily News (EDN) report, citing data from Morgan Stanley.
While the US investment bank has cut its earnings forecasts for most panel makers in China and Taiwan to reflect increased oversupply pressure, it did raise its earnings estimates for AU Optronics (AUO) and Innolux.
The bank raised its 2018-2019 earnings forecasts for AUO by 82 percent and 296 percent, respectively, based on the company’s diversification plans and efforts to upgrade its products and technology.
The bank also raised Innolux’s earnings prospects by 9 percent and 2 percent for 2018 and 2019, respectively.― Digitimes