Samsung Electronics shut down the TV factory and focused on the OLED panel for smart phones, which once pushed up the price of LCD TV panels. However, the recent rise in LCD panel prices has slowed down, indicating that the market may have peaked. Morgan Stanley (commonly known as Morgan Stanley) has just lowered the investment rating of LG Display (LGD) from "buy" to "Sell", the impact of the stock price fell to two months low.
The Harvest XQ Global Winner System quotation shows that as of 11:36 am on the 6th of Taipei time, LGD fell 1.35% to 29,150 won; the lowest price since the opening has dropped to 28,850 won, and it has been hit since December 6, 2016. low.
Barron`s.com reported on the 5th (see this), LCD panel prices have risen sharply in the past six months, with 50-inch panels as an example, quotes have risen by as much as 36%. Not only that, but the price of the 40-43 吋 panel has surpassed the pre-wave height of April 2015 since November 2016.
However, LCD panel quotations have gradually slowed down recently, and Morgan Stanley data shows that the price in January only grew by 1%, far less than 6% in October last year. Morgan Stanley analyst Shawn Kim warned that China's big manufacturers began to pull up production capacity, and the mild market conditions of the panel will change again.
Kim pointed out that customers are actively rebuilding their inventory after the panel production capacity declines, while the panel price increase is depressing demand. It is estimated that the supply of LCD TV panels above 40吋 is unlikely to be tight. On the other hand, China's 8th generation plant should start to expand production in the second half of this year, and the price of small-sized panels will be difficult to maintain. Mainly due to the production of OLED smart phones in the second half of the year, the capacity utilization rate of small-sized panels should be reduced.
Korean media has only recently heard that LGD is too slow to switch to OLED, iPhone 8 will not be adopted, it is the first time LG can not supply panels for the new iPhone.
South Korean media Pulse by Maeil Business News Korea reported on January 26 (see this), a senior executive of LGD confirmed that the company did not win orders for the iPhone 8, from the second half of the year, LG will not support large customers.
LGD and Apple's partnership began in 2008, while the iPhone has been using LG's panels since 2010. Apple decided to increase its suppliers in 2011, investing $1 billion in Sharp's LCD panel production line.
However, the report said that LG still has expectations, hoping to win the LCD version of the iPhone 8 orders. In comparison, Samsung Display has received orders last year to supply 100 million OLED panels for the iPhone.