TFT LCD Shipments Decrease, Revenues Fall 2 Percent: Report

The TFT LCD industry has been in over-supply for six quarters in a row and companies involved in the sector are less likely to see growth in the near future, says DisplaySearch in its quarterly report on the industry.

Shipments of large-area TFT LCD panels were 185.5 million in Q311, unchanged from Q211, but up 12 percent year over year, the report points out.

As expected, revenues reached $19.2 billion, down 2 percent Q/Q and 11 percent Y/Y. Panel makers, according to the research firm, are targeting a very modest 2 percent growth in shipments for Q411, as downstream manufacturers and brands are expected to prepare for the holiday season.

Revenues are not expected to grow because panel prices are still not showing signs of a rebound, the researcher warns.

Though panel prices rebounded slightly in Q211, it lasted only short term, noted David Hsieh (News - Alert), vice president, Greater China Market, DisplaySearch.

Q311 panel shipment growth has been hampered by stagnant economic conditions, especially for IT products and TVs. Panel makers did not achieve their goal of growing Q311 shipments 7 percent Q/Q, and slow demand has been eroding panel prices in Q311.

Based on panel makers’ shipment targets in Q411, DisplaySearch estimates that 209 million LCD TV panels will be shipped in 2011, 5 percent less than 220.8 million shipped during 2010. This would make 2011 the first year that LCD TV panel shipments decreased.

In Q311, only notebook and tablet PCs panel shipments increased Q/Q. As in Q211, tablet PC demand showed the strongest momentum, up 21 percent Q/Q and 246 percent Y/Y, while notebook PC panel shipments grew by 4 percent and 22 percent, respectively. Monitor panel shipments fell by 5 percent Q/Q, LCD TV panel shipments were nearly flat, and mini-note panel shipments fell 30 percent Q/Q.

With the exception of notebook and tablet PC panels, revenues were down Q/Q for all applications due to panel price declines. Monitor, mini-note PC, and LCD TV panel revenues fell by 5 percent, 34 percent, and 2 percent, respectively. For mainstream LCD panels, prices have approached cash costs of the panel makers.