According to Omdia released panel price in October and Price forecast in November on October 27, in October, all sizes look forward to the coming November, TV panel quotation is predicted to reduce the monthly decline to 5-12%, and is expected to usher in price stabilization in the first quarter of next year at the earliest.

Source: OMdia

After 13 months of rising TV panel prices, Omdia said, TV panel prices fell sharply in August and September this year, shocked the entire TV display supply chain, September prices fell, is the largest tfT-LCD industry in the history of the decline, each size another month, ranging from 14% to 32%, TV panel prices continue to fall in October, but, The declines are getting smaller and smaller, falling between 7-13%.



Omdia expects the average 32-inch TV panel price to fall $4, or 10%, in November. 43-inch also fell $4, or 5%; 50 inches fell $15, or 12%; 55 inches fell $15, or 10%; The 65-inch is down $10, or 7 percent, and the average decline for all sizes has moderated since October.



In response to the collapse in LCD TV panel prices, and to prevent prices from falling again to cycle lows, panel makers are beginning to offer lower prices to strategic TV customers who will lower their AVERAGE selling price (ASP) in the coming promotional season to clear inventory of premium TVS and drive traffic. At the same time, the panel plant reduced capacity utilization.



Xie Qinyi, senior research director at Omdia Display, said the worst was over for the panel industry, with manufacturers such as Hisense, Samsung, Lg and SONY picking up shipments at the end of October after a collapse in panel prices in the third quarter. In addition, the brand manufacturers have obtained the Rebate or MDF (Market Development Fund) from the panel manufacturers, which gives them more chips to promote their products. Brands are already gearing up for the upcoming Chinese singles' Day and Black Friday sales season in North America, when 55-inch TVS will drop to 1,599 yuan, 400 yuan less than last year, which is expected to spur a wave of buying.



In addition to the panel purchase temperature, Xie Qinyi said that from the supply side, panel factories in mainland China began to reduce capacity utilization rate in September, and will drop again in the fourth quarter. It is estimated that the average capacity utilization rate of global panel factories in the fourth quarter is about 82 to 84 percent. In the first quarter of next year, there will be the Lunar New Year holiday, so the panel factory will arrange annual repair and reduce chip casting. The estimated capacity utilization rate is still at a low level below 85%.



Overall, panel supply and demand a long, the next TV panel price will continue to converge, Xie Qinyi estimated that in November TV panel decline will be reduced to 10%, December decline convergence to 5%, the soonest in January, February will see 32-inch, 43-inch and other small size TV panel quotation stop falling.



In addition, Samsung Display's only remaining 8-generation line in South Korea is scheduled to be closed by the end of 2022, and it is estimated that it will produce 6 million TV panels for the group brand's own use in 2022. However, as panel prices fall and qD-OLED panels have an opportunity to accelerate mass production, Samsung Display plans to close its plant earlier than expected and reduce output to 4 million units by mid-2022. Under the effect of Samsung Display's early plant closure, brand manufacturers will increase panel purchases in the first half of the year, Xie said. Although the second half of this year panel peak season is not prosperous, the first half of next year is not so weak season, panel prices are also expected to rebound at the end of the first quarter.