Samsung Predicts 10% Q/Q Price Decline in Q2 for LCDs

We’re right in the thick of Q2 and Samsung is predicting that panel prices will continue to fall in Q2 by 10% compared to Q1. As production continues and demand slows, lower prices are the easiest way to generate demand. Samsung is also expecting many LCD makers to post operating losses in Q2 because average selling prices (ASPs) of panels are lower than what they expected. Samsung originally thought that panel ASPs would stabilize in Q2. Now, why would Samsung say something like this? Probably because this is a good way to talk to all of the folks out there that procure LCD panels from Samsung. If procurement folks think that LCD panel ASPs will only drop 10% in Q2, well then, you can’t get a better price than that. Samsung thought prices would stabilize by now, but they are going to give the procurement folks a 10% discount compared to Q1. Who knows exactly what will happen, but this is for sure: panel suppliers will resist as much as possible and the procurement folks will drive down the ASPs as much as possible. For big folks like Dell, they can do better than small folks.

Source: Reuters

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