Large size LCD market set for September recovery

Analyst firm iSuppli claims general strategy to cut production and lessen stock oversupply problem has worked

LCD in action: demand is picking up again, iSuppli claims

After nearly three months of being dragged down by plummeting prices into a profitless abyss, the large-sized LCD panel market is pulling out of a spin and could avoid a crash, market watcher iSuppli has predicted.

September will be the month when the industry finally grabs hold of the controls and pulls back the joystick of strategy, the analyst claimed.

“The large-sized LCD panel market has been mired in a state of severe oversupply since the start of June,” said Sweta Dash, director of LCD and projection research at iSuppli.

The blame lies with lower-than-expected panel demand and high inventory levels throughout the supply chain, Dash said.

Conditions worsened in August, with austerity causing prices to decline at an even faster pace than before, Dash said. But salvation came through panel production cuts, combined with the clearance of inventory and a recovery in demand from televisions, desktop PC monitors and notebook

“PCs are expected to shift the supply/demand equation back to balance in September. This will lead to a recovery in pricing,” said Dash.

iSuppli defines large-sized LCD panels as those having a diagonal screen dimension of 10 inches or larger.