Large LCD prices rise as makers hoard kit

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

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.”

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.