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2016 TV panel demand reduction area increased

Author : Date : 2015-12-22 13:08:45
 Market research firm IHS noted that because of the TV manufacturers inventory adjustment and 2015 business plan to repair, LCD TV panel industry from the beginning of the three quarter into a difficult period. LCD printed circuit board panel supply chain suddenly turned into excess supply, the industry tends to decline in the cycle, this change has seriously affected the profitability of the panel manufacturers.

IHS predicts that this dilemma will continue until the end of 2015. The panel inventory adjustments will continue to 2016 in the first half, because the capacity is still on the line, especially in china. On the other hand, the global retail stagnation, the TV update cycle has slowed down, the LCD TV market in 2016 will not appear strong growth trend.

In the first half of this year, the panel manufacturers output a large number of panels, although the second half of the panel prices fell, but the panel manufacturers are still not stopped. In the third quarter, they kept the original capacity utilization, production more panels; the rapid reduction of panel prices, to stimulate the TV brand to continue to purchase panels, led light for the season and short-term needs to do. These factors will have a negative impact on the LCD TV panel demand in 2016.

Forecast of the long-term needs of the latest edition of the panel by IHS (display long term demand forecast tracker) report pointed out that the 2016 the demand for LCD TV panel is expected to about 200 million 5700 million, than 2015 $265 million reduces 3% (as shown below); the mechanism analysis of panel demand decline reason is TV brands continue to control inventory, and global economic uncertainty.