Panel prices may fall more than expected

Xie Qinyi, deputy general manager of DiplaySearch Greater China, said that panel prices have fallen more than expected since August. From August's drop in price, the monitor panel's drop ranged from 5% to 7%, the notebook's panel dropped from 3% to 4%, and the TV panel's drop fell from 4% to 5%, while the original estimate of the average decline should fall. Between 3% and 4%. The original panel maker believes that in September, when the demand for the peak season is approaching, the price may stabilise. At present, it seems that there is little chance of stability. It is estimated that the panel price will fall more than expected. In the shortest period of two to three months, panel prices will collapse to cash costs, causing panel makers to fall into serious losses. According to industry insiders, the panel's price drop is both fast and large, not a downward revision of the general panel price, but a panic crash.

The Xie Qinyi analysis led to five reasons for this wave panel overcapacity, including: excessive inventory, brand factories hope to improve the gross margin, demand panel price cuts, weak demand in the Chinese market, the first half is too optimistic, leading to full production capacity, and the Korean panel factory The production capacity was fully opened, and the sales price and market share accounted for other factors. However, Xie Qinyi pointed out that the faster the panel prices decline, it also indicates that the strength of the rebound will soon come, especially when the price drops to cash costs, resulting in a net cash outflow from the LCD plant, the panel factory will not re-production, inventory levels at that time On the low side, the price of the panel is very cheap, which will cause the economy to rebound quickly. It is expected that the fourth quarter will be a rebound point.

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