Taiwan makers optimistic about LCD TV panel demand in 4Q10
Publish Date:2010-07-28
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The LCD TV market outlook in the third quarter remains uncertain, but panel makers are optimistic that orders will eventually pick up in the fourth quarter if not earlier amid promotional sales by brand vendors and retailers, according to market observers.
Although LCD TV inventories in channels may be high at 6-8 weeks, but inventories among retailers are at a healthier level of four weeks only, the observers said. Channel players - including OEMs and distributors - built up excessive panel inventories in the first half of the year in anticipation of shortages, but demand in the end market in the third quarter has failed their expectations.
Promotional sales by brand vendors and retailers will reduce LCD TV inventories and in turn boost demand for panels, but the timing of such pricing campaigns will determine when panel demand will rebound, the observers said. Once promotional sales begin, LCD TV inventories in the channels will be quickly digested.
Brand vendors and retailers, in order to preserve their profits, may not want to cut prices in the third quarter, but they will do so in the fourth quarter in line with year-end holiday sales, the observers said. Japan-based vendors are expected to be more aggressive in pricing in order to defend their market shares against strong competition from Korea-based rivals.
Rebecca Kuo, Tainan; Yvonne Yu, DIGITIMES
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