Worsening economic problems push down panel prices

TAIPEI, TAIWAN: According to WitsView's 2HOct price survey, in monitor segment, which is already relatively saturated (more than 90 percent market penetration rate), panel prices dropped by 5-6 per cent ($5).

Supported by the PC desktop replacement effect, NB panels slipped by a smaller 2-4 per cent ($2-3). TV panels, which still have some room for further cost down, fell by 2-6 percent ($10-15), as panel makers try to obtain more orders aimed for the year-end Christmas sales.

Due to the deteriorating conditions in the global economy, thereby seriously impacting the corporate and consumer confidence, the end market demand has seen no notable improvement.

Although the panel inventory continues to be digested, thanks to the Taiwan panel suppliers’ lower utilization rates, the panel price pressure is still evident. This primarily stems from the conservative panel ordering and relevant inventory adjustments in October.

"In 4Q08, panel makers will face even bigger financial challenges. Amid the sluggish market demand, panel prices could continue to trend downwards," said WitsView analysts.