Large LCD prices rise as makers hoard kit

Trend set to continue into first quarter as post-Christmas slowdown kicks in

By Fleur Doidge

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04 Mar 2010

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Panel premium: Prices for 10 inch-plus LCD panels rose throughout last month

Prices for large LCD panels rose throughout February as a result of stockpiling by vendors, according to US-based market analyst iSuppli.

Sweta Dash, senior director for LCD research at iSuppli, said the phenomenon – restricted to panels that measure 10 inches or more diagonally – was likely to continue for all of the first quarter.

“This will keep market revenue in Q1 2010 from declining as much as in previous years,” said. “Q1 is typically a slow season for the global market for large LCDs, following the annual peak in shipments during the Q4 holiday season.”

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Dash said the first quarter of 2010 has so far seen TV and computer vendors alongside systems integrators busily replenishing large-panel inventory that had been depleted over the Christmas holiday season.

Average panel pricing was expected to rise by $2 to $3 each for monitors, $1 to $2 each for notebooks, and $2 to $3 each for TVs.

Consequently, iSuppli predicted that global revenue from shipments of large LCD panels will reach $17.3bn (£11.3bn) in Q1, down by 5.1 per cent from $18.2bn recorded for Q4 2009.

“The market in Q1 posted impressive growth compared with the same period in 2009. Revenue rose 66 per cent, from $10.4bn in Q1 2009,” said Dash.

According to UK-based displays analyst Meko, consumer demand for flat-panel TVs across EMEA kept rising towards the end of 2009. However, the biggest growth was in EMEA.

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