Import tariffs on large displays is discouraging people from buying big TFT LCD displays. Currency fluctuations have also had an effect on the figures.
IHS Technology said in a report that shipments will fall by about five percent for the whole of 2015.
However, the decline in shipments will be offset by the manufacturers by growth in the amount of panels that can be built – that will grow by five percent in 2015.
IHS said that year on year shipments of displays for tablets, notebook PCs, and PC monitors will fall by 12 percent in 2015.
Yoonsung Chung, a senior analyst at IHS, said that maintaining TV panel production is the most important to use the full capacity of the fabrication plants that build the panels.
He said: “To consume this added capacity, TV panel makers must produce more panels, whch means the industry could end up adding excess panels to inventory, leading to sharp TV panel price erosion in the second half of this year.”
He said prices are also likely to fall in 2016, meaning the cost of 55-inch and bigger TVs will fall – and that may stimulate demand.
A report said that dropping demand for notebooks, TVs and the like are causing something of a crisis in the LED manufacturing industry.
The Photonics Technology and Industry Development Association, quoted in English language daily the Taipei Times, estimates that sales of products could drop as much as 10 to 20 percent during 2015.
And that’s caused suppliers of LED lighting to start a frenzied price war.
The association said that the top 10 manufacturers in Taiwan saw a nine percent drop in sales in the first half of this year and made losses rather than the profits they made in the same period last year.
It’s not just Taiwan that’s been affected by the drop – it’s a global effect – but one market that is unlikely to be affected is the Chinese market, the association said.
Manufacturers of LCD panels for the IT and other markets are feeling despondent because there are precious little signs that people are buying.
Generally speaking, the second quarter of the year is a healthy one for the manufacturers as companies gear up their offerings for the third and fourth calendar quarters.
But, according to a survey from Trendforce, that doesn’t seem to be happening.
The survey showed that for the notebook sector there’s no demand for panels even given the traditionally healthy back to school sales. Nor has the industry see demand for Windows 10 generate additional orders.
In fact, there’s a glut of inventory in the channel, meaning that prices for panels have actually fallen in June.
Sales of monitors are not helping the panel manufacturers either. Trendview said there was a “significant” decline in shipments in the first quarter this year, and the second and third quarter look to be gloomy too. Here too prices have dropped.
The other sector that generates profits for the manufacturers are TV panels but there’s a price war there, particularly on the popular 32-inch size.
US analyst company IHS has confirmed other reports about the future of 4K TV – the technology is going through a boom period right now and into 2016.
In case you don’t get the picture, 4K ultra HD televisions can show as many as eight million pixels per screen compared to two million for 1080p Full HD.
IHS said that in 2016, one of five TVs will use 4K TV panels – that’s down to people wanting high definition images as well as better production from the companies that make the panels.
And, according to senior analyst Linda Lin, prices of the panels began to fall in 2014 and earlier this year. She said most TV brands now have 4K UHD products.
South Korean companies are now leading the race to produce panels with LG Display and Samsung the biggest manufacturers worldwide.
IHS said shipments of 4K TV panels were over three million units in April this year – that’s 14 percent of all TV panels.
If you’re thinking of buying an LCD TV in this quarter or in the third quarter you can expect to pay less.
That’s according to a survey from market research company IHS which said that there’s oversupply of the LCD panels in this quarter and in the third quarter which means you can expect to pay less for units.
Average selling prices for 32-inch, 40-inch and 55-inch LCD TV panels have fallen since March 2015.
Last year it was very different because there was a surge of demand for larger size models.
But while some territories can expect prices to fall, other areas including Eastern Europe, Russia and South America will see TVs costing more because of currency fluctuations.
Alex Kang, a senior analyst at IHS Technology, said that the industry is worried about a potential oversupply this year. “TV set makers are considering lowering TV sales targets and downsizing orders for panels amid sluggish consumer sales caused by foreign exchange volatility.”
Sales of Taiwanese manufactured TFT LCD screens amounted to 60 million in the first quarter of this year, but that’s down marginally over three percent compared to the same quarter last year.
Digitimes Research (DR) said that of the four sectors it watches – TVs, monitors, notebook and tablets only the first showed positive growth – up 13.5 percent year on year.
Korean flat screen manufacturers LG Display and Samsung both opened next generation fabrication plants in the quarter and concentrated on switching production in the old fabs to churn out TVs and monitors.
But demand for notebook panels and monitors was weak in the first quarter, with DR reporting that Taiwanese manufacturers saw a nine percent sequential decline during the quarter.
Tablet panels fared worse – shipments for these gadgets fell 17.5 sequentially, said the research company.
Technology brands are labelling their products with specifications and jargon which are misleading consumers according to a report from Which?.
The consumer watchdog took two of its investigators to a range of stores to research the way tech brands label their products. It said the amount of different labels on different brands of TVs, cameras, and laptops means they cannot be compared against rivals, which are misleading people buying new kit.
It also pointed the finger at shop assistants who add more confusion into the mix by not understanding the labels and not scrutinising them either.
Researchers found laptops easy to compare, thanks to the consistent information used across all the models on show. One said: “The labelling saying they hold 40,000 songs or 50,000 photos is a useful, easy-to-understand measurement”. While easy to understand, we would err on the side of caution by using measurements in files as sizes are variable depending on quality.
Similarly practical labels on the Blu-ray players Which? looked at held the same appeal, providing “meaningful comparisons”.
However Which? said it was TVs that caused the most confusion, making lots of claims and using big numbers.
One set claimed to have ‘four trillion colours’ despite programmes not being broadcast in that many colours, making the information meaningless.
It warned consumers against comparing statistics – such as contrast ratios between different sets – because the manufacturers do not have a common standard, so the numbers they use are not the same.
Digital camera marketing also came under scrutiny. Some devices claim to have an impressive “digital zoom” rate, but this simply means that they enlarge part of the original image, rather than refocus the lens (optical zoom), according to the report.
Which? has said it has reported the labelling to the Advertising Standards Authority.
The average LCD TV selling prices fell twice as fast over 2009 than they did in 2008 because of oversupply, according to research from DisplaySearch.
Overall blended average selling prices for LCD TVs fell 24 percent year-on-year in 2009, while PDP TVs saw a decline of 21 percent. The first half of 2009 saw better than expected unit demand because of price erosion, making it easy-peasy for brands to nip costs. LCD TV panel prices had fallen loads between fourth quarter 2008 and the first quarter 2009, which led on to affect the amount of products sold in Q1 2009 and Q2 2009.
The situation U-turned in Q3 and Q4 of 2009 though – panel prices went back up and peaked in September, where it stayed elevated during a traditionally weak seasonal period. DisplaySearch reckons that TV manufacturers and retailers handed over margins gained early in the year to make sure that prices didn’t stagnate or rise, thereby ruining demand.
According to the report, LCD TV prices are expected to decline at a less perilous rate in 2010 as panel price erosion slows. Huge and growing demand in China is keeping suppliers on their toes. As well as this, we can expect fancy 3D TVs to help offset natural price erosion.
PDP TVs will probably fall between 15 and 25 percent over the course of the year. That’s faster than LCD TVs but slower than 2009’s steep decline.
Last year the flat panel TV market was bouyant and bucked the economic trend, mostly because of sales to mainland China and Japan.
Now market research company Displaysearch is predicting that sales of TV worldwide will reach 228 million units – and 180 million of those will be LCD TVs.
Hisakazu Torii, VP of TV market research at Displaysearch, said LCD TVs will grow by 24 percent compared to 2009. He said: “This is helped by the introduction of new technologies like 3D, as well as the expansion of newer features like LED backlights and internet connectivity.”
Torii said that a drop in prices contributed to the good figures in 2009 – LCD TV average prices fell by 24 percent compared to 2009. But this year average prices will fall by five percent for LCD TVs and 10 percent for plasma TVs.
The reason for that is that there’s more growth in larger screen sizes, and there’s increaded share of more pricey LED backlit LCD TV models. They carry a premium.
Sales of plasma TVs will rise about six percent this year to represent over 15 million units. 3D plasma TVs will also be introduced by a number of different manufacturers.
As for CRT TVs – shipments will carry on fading from the market and drop by 36 percent this year. Last year sales fell by 40 percent.
In 2010, LED backlit TV shipments will exceed 35 million units, Displaysearch thinks.