Supply Of Displays Out-paces Demand, Prices Expected To Fall

According to the latest figures published by the market analysts iSuppli the demand for large LCD/LED-LCD/IPS displays will be too low to meet demand causing widespread price drops. In terms of figures the period July through September will reportedly see supply exceed demand by approximately 15.9%. This comes after unexpectedly low levels of demand where even the lowest and most pessimistic estimates forecasted a 13.2% oversupply for the same period.

“This is the time of the year when LCD panel makers usually are ramping up production to meet holiday demand for televisions, notebook PCs, tablets and other consumer-oriented electronics,” said Ricky Park, senior manager for large-area displays at IHS. “However, the display industry is confronting the prospect of weak sales growth and a lack of visibility into future demand trends.”

Much of the decline has been encountered by Chinese suppliers who are seeing declining export growth and swelling inventories despite a strong Chinese economy. The Chinese government also terminated its energy saving TV subsidy earlier this year which is further expected to stifle demand.

That said it isn’t all doom and gloom as this year’s holiday season is expected to bring a change of fortunes for the display industry as Christmas and the Winter sales always shift some extra televisions.

Image courtesy of Samsung