Analyst firm TrendForce reports that traditional liquid crystal display (LCD) prices continue to fall. In this situation, manufacturers are forced to reduce the previously planned production volumes of panels.
Image Source: BOE
The cost of LCDs is expected to drop to an all-time low. So, recently models of 32 and 43 inches diagonally have fallen in price by an average of $5-$6. The cost of 55-inch panels decreased by $7 in early June, while 65- and 75-inch displays became cheaper by $12-$14.
To compensate for the decline in cost, manufacturers are forced to revise plans for the manufacture of panels. In the third quarter, the total output of LCD screens will be reduced by 12% compared to previously planned figures.
Chinese companies BOE, CSOT and HKC now produce about 66% of all TV panels. In the next quarter, they will reduce output by 15.8% compared to the original plan and by 2% compared to the current quarter.
Taiwanese manufacturers account for almost 20% of TV panel deliveries, and these companies are also forced to adjust production volumes. As for Korean manufacturers, they have turned their attention to technologies such as OLED, QD-OLED and QLED.
