There is an oversupply of LCD TV panels and that means prices are expected to fall. According to DisplaySearch, April average selling prices (ASPs) for 32″ 720p LCD panels dropped $2 from $330 to $328 (typical) while 42″ 720p ASPs were down $10 from $532 to $522. 46″ 1080p ASPs were also down $10 from $765 to $755. Bear in mind these are LCD TV panel prices and the corresponding LCD TV set prices can be approximated at around 2x to 2.5x depending on the brand. So that means we can expect 32″ 720p LCD TV sets to be priced around $656 to $820 in about 3 months. For a 46″ 1080p, the set prices could be around $1510 to $1887.5 in 3 months, a rough estimate of the time it takes for panels to be integrated into LCD TV sets and then be available for sale in the channel.
LCD manufacturers have become more agile and generally tend to respond to market indicators faster than before. Industry sources indicate that LCD manufacturers are likely to shift production from LCD TV panels to IT panels that are used for LCD monitors and notebook PCs. Of course, there are some limitation. For instance, Samsung’s G8 LCD fab is optimized for very large LCD TV panel production and may ruin the market for 22″ LCD monitor panels if they decide to dramatically increase the supply of those by producing them in its G8 fab.
Weak LCD TV sales were expected in Q1’08 but results are coming in that indicate the results are even weaker. Typically Q1 and Q2 of each year are weak quarters for LCD TV sales. A decrease in LCD TV panel ASPs might increase the demand for LCD TVs. Sharp is focusing more on 32″ LCD TV production and has increased 32″ LCD TV panel production by loading it on its G8 plant.
[tags]LCD TV, 32″, 42″, 46″, 720p, 1080p, Samsung, G8, LCD TV Panel[/tags]