Its consequence will be a fall in prices.
After analyzing the situation on the flat panel market, experts from WitsView, a research division of TrendForce, came to the conclusion that the panels for monitors this year will quickly become cheaper.
This is due to the intention of manufacturers to increase the output of these products, since even taking into account the reduction in prices, it still brings more profit than large panels, and the continued expansion of production capacities in China. It is expected that during the year, the supply of panels for monitors will exceed demand by almost 20%. This means that in the short term, the fall in prices for such panels will not stop.
TrendForce experts recall that a similar situation occurred last year with panels for TVs. The expansion of production of Gen 10.5 and Gen 8.6 led to a significant excess of products, so that, for example, the price of 32-inch panels, which occupy a quarter of the market, fell by 25% over the year, to $ 30 apiece. Since in 80% of cases panel prices were lower than production costs, manufacturers began to reduce production, reducing capacity utilization, and South Korean companies Samsung Display and LG Display even closed some production lines. The wave of contraction began in September and continued in the fourth quarter. In the third quarter, output was reduced by 8%, in the fourth – by 16%. Together with the seasonal increase in demand for final products, this allowed to stop the fall in prices for TVs with screens up to 65 inches.