14 DAY TRIAL // The latest trends on the market show that the LCD monitor panel prices are expected to experience massive drops in August, going under their fully-loaded costs. According to WitsView, the prices might even get close to the cash cost levels, which will be the lowest acceptable average selling prices (ASPs) for makers.
The research firm stated that IT panels are expected to go down 7-9 percent, while TV panels should drop 3-5 percent during the first half of August. The continuous fall of the LCD prices is caused by a flooded inventory and low demands from clients who are reserved on making orders while waiting for further price drops.
On the other hand, WitsView seems rather optimistic about the panel market in the second half of the year, as the persistent price fall is expected to stimulate demands at a certain moment. The back to school period in September, China's National Day holidays in October, and the year-end Christmas sales promotions are believed to bring forth some attractive price offers for display products. The firm predicts that this is the way brand vendors and retailers will act by the end of the year.
WitsView also expects to see the inventory jams to be cleared out, as panel makers are believed to cut off their output to solve the problem. The changes on the IT market, with consumers switching towards mobile machines rather than desktops may have a certain influence on the panel market as well.
We should notice that this is not the first time that LCD panel makers face dropping prices, though it is the most dramatic fall so far. The market sees price drops periodically, and this is probably the fourth or fifth year this happens. Nevertheless, the present drop started somewhere during the second half of the last year and, although some constant up wards periods have also been registered, things continue to get from bad to worse.