With FPD makers having lost money for the past six quarters in a row and the FPD industry being in the midst of its longest down turn since its creation, panel makers have now frozen almost all expansion plans for LCD TV fabs. At the same time, lower prices are driving increased demand, particularly for large (50â€+) TVs. In its recently-released report, NPD DisplaySearch predicts that the net effect will be a tightening of the supply/demand balance, particularly in 2013, when the glut ratio is forecast to fall well below 10% for the first time since Q2â€™10. This is expected to set off another crystal cycle of improved panel pricing, higher profitability and increased investment.
If the FPD industry has been losing money for the last six quarters wouldn’t more sales of lower priced TVs be bad for the FPD industry? Yes the FPD industry continues to reduce the cost of manufacturing, but it’s obvious prices have eroded much faster. And who knows what will happen in 2013? But according to DisplaySearch there will still be an oversupply by then.