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Company News >> 2018 Q1 global LCD TV panel demand will experience great fluctuations
Demand for LCD panels from TV makers in Korea and China is strong in the fourth quarter of 2017, but market demand is likely to undergo some changes in the first quarter of 2018 due to the anticipated changes in demand and the implementation of the panel purchasing strategy.
According to data provided by IHS Markit, some TV brands are expected to maintain their original panel purchase plans while others are expected to see less demand in the first quarter as traditionally it is a slow-moving season.
According to relevant data, the first quarter of 2018 is expected to South Korea's TV makers LCD panel purchases will be 3% lower than the previous quarter, or an increase of 1% over the same period last year.
Deborah Yang, director of supply chain at IHS Markit TV Display, said: "There is a risk of demand adjustment due to the already abundant supply-chain buffer in the first quarter, coupled with the panel purchase program, which these manufacturers may continue to plan As a more competitive price negotiation strategy, which has been one of the most critical factors in LCD panel supply and demand fluctuations. "
In the first quarter of 2018, purchases by China's top six television manufacturers, including Changhong, Haier, Hisense, Konka, Skyworth and TCL, are expected to decrease 30% QoQ and down 5% YoY.
It is estimated that by the end of December 2017, Chinese brands have relatively high inventory levels as they have already started preparations for the January promotion season and the February Lunar New Year holidays. In view of this, they will not be eager to continue to increase panel supply in the first quarter, and may want to reduce the corresponding bargaining price.
TV makers seem to have the bargaining power due to the upcoming off-season sales. However, the uncertainty over the stable supply of feature-rich high-end products and larger-sized panels will worry top-tier TV brand manufacturers. Chinese panel makers have yet to prove whether they will start mass production of 65-inch LCD panels from the world's first 10.5G fabs in the first quarter.
Top TV brand manufacturers want to ensure sufficient supply of 65-inch and larger panels. In the meantime, some panel makers are planning to retrofit fabs in the first quarter, which will result in instability in the supply of LCD TV panels, especially large size panels. All this means that in the first quarter of 2018 the global LCD TV panel market demand will fluctuate dramatically.

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