Q2’11 large-area TFT LCD shipments and revenues increased by 11%
“The TFT LCD industry has been in oversupply for more than a year, and Q1’11 was at the bottom of the cycle. Prices rebounded slightly in Q2, and both shipments and revenues increased. However, this was just a short-term rebound, as stagnant economic conditions and low consumer confidence continue to exert a drag on demand, especially for IT products and TVs,” noted David Hsieh, Vice President, Greater China Market, DisplaySearch. “Panel makers did not achieve their goal of growing Q2’11 shipments 18% Q/Q, and slow demand is eroding panel prices in Q3.”
Most LCD TV set makers are reducing 2011 panel demand forecasts in order to trim costs and maintain low inventory levels. Panel prices are becoming more negotiable due to the concern over weakening demand, and falling prices will encourage panel makers to cut capacity utilization in 2H’11. This is likely to persuade panel makers to set conservative shipment targets. This is abnormal for second half shipment targets, which typically aim for strong growth.
In Q2’11, all applications experienced Q/Q growth, and tablet PCs showed the strongest momentum with 88% growth Q/Q and 386% Y/Y. Monitor and notebook PC shipments grew by 3% and 11% Q/Q, respectively but both were flat Y/Y. LCD TV panel shipments grew by 7% Q/Q, while mini-note PC panel shipments grew 5% Q/Q. Despite 7% Q/Q growth, TV panel shipments suffered a 4% Y/Y decline. The decrease in panel prices at the end of July and beginning of August has caused panel makers to become concerned about 2H’11 conditions.
Table 1: Q2’11 Large-Area TFT LCD Shipments by Application (Millions). Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report
In terms of revenues, all applications experienced Q/Q growth in Q2’11 due to stabilized panel pricing. Tablet PC and public display panel revenues showed the strongest growth, at 64% and 28% Q/Q, respectively. However, Y/Y revenue growth for monitor, notebook PC and TV panels were all negative. Due to an increase in shipments, panel makers are targeting 11% growth in revenues in Q3’11.
Table 2: Q1’11 Large-Area TFT LCD Revenues by Application (Billions). Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report
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