14 DAY TRIAL // Prices for large-sized LCD panels for notebooks and LCD monitors have begun declining starting July 2004. Panel makers began cutting prices, as they tried to burn off their inventories, which were rising due to increased production levels. Panel prices began to increase in April 2003, and rose about 21-28% from that time until mid 2004.
In a report, the Market Intelligence Center said LCD TV prices fell continually last year, as consumers didn't rush into buying an LCD panel and oversupplies began taunting manufacturers. The gap between LCD and classic TVs began to shrink, thus allowing more users to buy the new pixels. Taiwanese producers managed to ship over 570,000 units in the fourth quarter.
Fierce competition on the LCD market also lead to lower prices and the shopping spree continued especially during the holidays. The analysts reckon the first quarter of this year means there could still be oversupply. But it reckons consumers may still wait to see what's going on before having their old TVs replaced. Taiwanese manufacturers will be rolling out plenty of 32-inch, 37-inch and even bigger LCD TVs this year, and that means shipment volumes will double in 2005 compared to last year, although it offers no prediction on average selling prices.
DisplaySearch expects panel prices to keep falling in the first quarter of 2005, and the firm believes prices are unlikely to rebound in the first half.
PIDA (Photonics Industry & Technology Development Association) pointed out that panel prices will likely stabilize or even rebound in the third quarter after a series of price-cutting strategies, possibly to be launched by China-based panel makers in the first half of this year.