Smartphone demand fell as brands adjusted their inventory levels due to weak second-quarter sales. Smartphone panel prices were flat in June after a nine-month surge, but supply increased in the third quarter and market research firm Sigmaintell expects prices to ease. Flat panel prices were also flat across the board, with the 10.1-inch panel being the first to drop in price due to increased competition.
Small and medium-sized panels, including smartphones and tablets, have risen for nine consecutive months since August, when they began to soar. Benefit from the small and medium-sized size panel prices rose, color crystal gross margin in the first quarter of this year to the high point of 48%, due to the second quarter panel prices continued to rise, the legal person is optimistic about the gross margin is expected to climb higher.
However, sales in China, India and other smartphone markets were weak, and terminal brands began to adjust inventory levels at the end of the second quarter, with overall smartphone panel demand falling. Insight said that although the demand side appeared weak, but from the supply side, as the demand for mobile phone panels fell, some panel manufacturers strategically shifted production capacity to other applications, reducing the risk of oversupply, the smartphone panel prices are expected to be stable in June.
From the technical point of view, Group Intelligence said that A-Si panel semi-finished products in June prices stable, but the inventory adjustment continued into the third quarter, and the panel supply in the second half of the year, supply and demand is relatively loose, if the second half of the peak season is not as good as expected, prices may loosen down. As for the panel modules of smart phones, due to the persistent shortage of driving IC, the supply is limited to some extent, and the overall module price is expected to present a relatively stable trend.
LTPS panel prices were previously adjusted to drive IC price increases, but due to the recent adjustment of inventory level of terminal brands, the overall demand declined, the overall LTPS panel prices were flat in June. Flexible OLED panels are affected by the supply shortage and price rise of driving ICs, and the prices show a trend of differentiation. Panel manufacturers keep the prices of first-tier mobile phone manufacturers stable, while small customers with less demand are facing the pressure of continuous price rise.
Drived by the house economy, the first half of this year, the demand for tablet computer panels is not weak, and the price is rising slowly. However, the current demand also appears to be declining phenomenon, Group Intelligence Consulting expects that in June, flat panel module prices were flat. However, some panel manufacturers have adjusted their product lines and increased the supply of 10.1-inch WXGA, resulting in a phenomenon of low price competition. Prices are expected to ease in the third quarter.
