According to DisplaySearch’s PriseWise service, 26-inch, 32-inch and 42-inch LCD TV panel prices are rising faster than other sizes. 32-inch with a 1366 x 768 pixel format increased US$4 in late May. 42-inch LCD panels with a 1920 x 1080 pixel format rose US$2 on average with a high of US$335, US$7 more than in early May.
Shortage In general there is a LCD TV panel shortage. Supply is not able to meet demand. The smaller 26-inch with 1366 x 768 pixel format also rose US$2 on average with a high of US$146, up US$3. 37-inch and 46-inch did not move. LCD suppliers are ramping up capacity and utilization to meet this demand but that will take some time. LCD suppliers are also hesitant to ratchet up production too quickly since many LCD TV panel sizes are being sold at below cash cost.
Solid Demand Demand from China continues to be strong. According to DisplaySearch, some TV brands are reporting signs of slowing demand in the EU and North America regions. In my opinion, strong brands such as Samsung, Sony, Sharp, Panasonic and LG should continue to experience growth as will the low-price leader Vizio. In response to slowing demand some TV brands are expected to lower retail prices. If this is true, it tells me that TV brands still have some margins to work with and the increase in LCD TV panel prices will not translate into higher TV set prices just yet.