Quanta (QDI) Reduces Output

Q2 is slow season, but it’s almost over. 30 more days and we’re in Q3. QDI stated that it will reduce shipments during “this slow season” to prepare for the year end. I don’t know how you prepare for the year end by reducing shipments. According to some sources, QDI is expected to trim output by as much as 30%. This was in response to AUO’s request for output reduction. AUO will be absorbing QDI in October 2006. This is a smart move, not to prepare for the end of the year, but to help with the inventory situation and to slow price erosion of LCD panels. Of course the customers will not be enjoying breahtaking low prices at the end of the year, just very good prices.

Source: Reuters

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