Santa Clara, Calif. (Vocus) November 9, 2010
Shipments of large-area TFT LCDs over 9.1” fell to 163 million units in Q3’10, with 4% Q/Q decline, but 7% Y/Y growth. Revenues reached $21.3 billion, down 7% Q/Q, but up 7% Y/Y. According to the latest Quarterly Large Area TFT LCD Shipment Report, panel makers are targeting just 3% shipment growth in Q4’10, as the capacity utilizations have been in a controlled range due to the slow demand in the end market and supply chain inventory adjustments.
“The TFT LCD industry experienced an oversupply in Q3’10, and as a result, shipments declined, panel prices fell and suppliers reduced capacity utilization rates due to the lack of orders and inventory reduction. However, even as overall shipments decline, LED-backlit panel shipments are still growing, continuing the industry’s irreversible trend toward LED,” noted David Hsieh, Vice President, Greater China Market, DisplaySearch.
Hsieh added, “The Q3’10 performance results are partly due to over-optimism and over-stocking in Q2’10. Looking forward to Q4’10, panel prices, inventories and capacity utilization have all fallen to lower levels. Despite this, the TFT LCD industry is expected to overcome these tough challenges by the end of the year.”
In terms of demand by application, monitors and notebook PCs experienced Q/Q declines, but LCD TV and slate PC applications continued to grow in Q3’10. Notebook PCs suffered the largest Q/Q decline of 14%, while monitors fell by 8% Q/Q. Panel prices for both applications fell drastically from July to October, and only started to see some stabilization in November. Mini-note/slate PCs grew by 8% Q/Q, thanks to soaring 9.7” panel shipments, which increased from 3 million units in Q2’10 to 5.6 million units in Q3’10.
LCD TV panel shipments grew in Q3’10, despite the oversupply situation because of spot deals for brands who are looking to holiday promotions to reduce inventories, especially on 40”+ and LED models. Shipments of 40” and larger LCD TV panels grew from 16 million units in Q2’10 to 18.1 million units in Q3’10. Among them, LED panels grew from 5.8 million units in Q2’10 to 7.8 million units in Q3’10.
In Q3’10, Samsung Electronics and LG Display nearly tied for market share leadership on a revenue basis, capturing a 26.0% and 25.9% revenue share, respectively, and sales of $5.5 billion. AUO was third at $3.4 billion with a 16.1% share. Chimei Innolux followed with a 14.0% share (down from 15.7% in Q2’10) at $3.0 billion.
DisplaySearch tracks LED-backlit LCD panel shipments by size, resolution, panel supplier, and LED type. Of the $21.3 billion in large area TFT LCD revenues in Q3’10, LED-backlit panels accounted for 44%. This is a big jump from 37% in Q2’10. On a unit basis, 77 million LED-backlit panels shipped in Q3’10, a 6% Q/Q growth from Q2’10. The total penetration of LED backlights increased to 47.2%, from 42.7% in Q2’10. In Q3’10, LED backlight penetration was 21% in monitors, 93% in notebook PCs, 100% in mini-note/slate PCs, and 26% in LCD TV. LG Display was the leading LED-backlit LCD panel supplier in Q3’10.
Looking forward, panel makers are targeting shipments of 168 million units in Q4’10, which would amount to a 3% Q/Q growth. But for LED-backlit LCD panels, panel makers are aiming to grow shipments by 12%. However, expected total large-area TFT LCD revenues will decline by 9% in Q4’10 due to price erosion in LCD TV panels. In the meantime, LED-backlit LCD panel revenues are expected to fall by 2%, despite the strong expected growth in shipments. This is based on the fact that, in TV applications, price reductions in LED-backlit panels are more severe than for CCFL-backlit panels due to the shrinking LED premium.
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com. Read our blog at http://www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.
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