Panel manufacturers are worried that there’s an inventory overflow compared to the current demand for LED backlit TVs.
Korean panel vendors in particular have been saving LED stocks from the end of last year, while Taiwanese manufacturers have adopted huge quantities of LED backlight products – particularly AU Optronics, which has created a short supply for its Lextar plant.
The current panel and set inventory is still set at over four weeks, which is leading to a decline in CCFL panel prices – this is forcing manufactuerers to take a conservative attitude towards LED backlit products. A report from LEDinside asks whether this will affect the penetration rate of these products, though it’s too early to tell just yet.
Samsung will be taking an aggressive shipment target for its LED-backlit TVs this year, also actively preparing stocks and materials since the end of last year. Retail prices for LED backlit TVs are still on the high end, which is making end user market sales lower than forecasted for the first half of 2010 leading to excess inventory. However Samsung’s product “pull-in” began slowing at the beginning of Q1, and the giant has started to adjust inventory levels.
Gaining orders outside of Korean firms will be crucial for Taiwan’s LED industry to achieve sales targets, suggests the report. That said, following Samsung’s dive into the market last year, other TV brands are beginning to actively put LED-backlit TVs into their portfolios but big names such as Sharp and Sony are still lagging and behind schedule.