Due to the shortage of panel supply in the second quarter of 2014, both panel prices and shipments have increased, and panel makers have also gradually secured profits. NPDDisplaySearch predicts that the shortage of panels, especially in LCD TVs, notebook computers and LCD Monitor panels will continue until the fourth quarter of 2014.
LCD TV brand manufacturers competition: LCD TV brand competition is bound to become more and more intense. With the loss of market share of Japanese TV brands in the past few years, Korean and Chinese brands are actively occupying. For many TV brands and foundries, the profitability of the past few years will fluctuate, and the next two to three years will be the continuous development or the elimination of economic scale. This has led many TV manufacturers to list the quantity and economic size as a higher priority than panel purchase prices. In other words, television manufacturers in Korea and mainland China will continue to increase their sales targets and will focus on ensuring the number of TV panels rather than prices. At the same time, Chinese TV brand manufacturers are particularly aggressive in exporting products to the international market. With vertically integrated integrated supply chains already in place and continuing to expand, this has encouraged panel makers to produce more OpenCells and to increase the number and types of TV panels. These will all go back to stimulate the whole machine manufacturers to purchase panels more actively.
The reasons for the panel shortage due to NPDDisplaySearch analysis are as follows:
Despite the oversupply of LCD TV panels in 2013, panel makers are increasingly developing new processes and new technologies such as 4K, Curved, Oxide Backplane, Copper Array, and AMOLED and so on, which have affected the panel plant's effective capacity supply.
Many of the new capacity added in mainland China does not all run or produce larger-sized TV panels to meet the needs of large-size TVs. NPDDisplaySearch stated that panel makers still need a learning cycle and more time to reach full production.
With the large screen size trend, LCD TV manufacturers need to put more production capacity on a per unit area basis. At the same time, as panel makers continue to introduce new sizes, models and specifications of the panel, TV manufacturers have to continue to fill inventory in order to introduce new products.
The World Cup stimulated global television demand, especially in South America. At the same time, the Mexican government has issued a subsidy policy for LCD TVs, which helps sales of small-size LCD TVs. Not only has the television market in many developing countries started to grow strongly in the past two years.
LCD TV brand manufacturers, especially South Korean and Chinese manufacturers, set their 2014 shipping targets very aggressively in order to capture market share and regain lost markets from Japanese TV brand manufacturers. Therefore, these LCD TV brand manufacturers are actively developing their panel inventory.