TV panel prices projected to rise by about 10% QoQ in Q4 20 | 4K/UltraHD | News | Rapid TV News
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With display panel prices exhibiting what the analyst called a remarkable quarter-on-quarter (QoQ) increase in the third quarter of the year, the continued tight supply of large-sized panels will see prices maintain their rise says a study from analyst TrendForce.
SOny 8K 22May2020
Noting that the Q3 increase in TV panel prices reached above 30%, TrendForce said that with the supply of large-sized panels expected to exceed demand by just 0.2% in Q420, the shortage situation for certain panel applications is expected to persist, meaning panel prices may potentially increase by as much as 10% QoQ in Q420.

TrendForce predicts that TV panel quotes may remain at a peak level after continuously rising in Q420, primarily because the currently stable state of slightly tight supply is yet to be disrupted. Furthermore, due to persistently high demand for IT panels, panel makers are yet to transition their production capacity from IT panels to TV panels on a large scale in the short run even though TV panels have been seeing a noticeable rise in both quotes and profitability.

The analyst also remarked that the supply of TV panels has become somewhat constrained due to factors such as the shuttering of SDC’s panel manufacturing operations and the slight shortage in Gen 10.5 glass sheets. In light of these supply-side limitations, the global supply of TV panels is expected to decrease by 3.8% QoQ in Q420.

Yet the analyst also warned of the associated downside of this with the most pressing concern on the demand-side of the market is whether TV brands will be forced to raise prices on their TV sets after TV panels undergo a significant price hike. The upturn in TV prices will likely hamper the sales performance of TV sets. TrendForce believes that channel distributors and TV brands have negotiated to suppress the upturn in TV prices until possibly early 2021 in the North American market, which is the market with the most remarkable sales performance globally in 2020.

If retail pricing proceeds as negotiated, TrendForce expects the deferred price hike in TV sets, as opposed to an immediate price hike, to have less of an impact on TV panel demand in the short run. Although TV panel prices have now returned to their level from nearly two years ago, they may still increase by about 10% QoQ in Q420 due to the interaction of such factors as panel capacity allocation on the supply side and market uncertainties on the demand side.