Worsening global economic problems push down LCD panel prices

According to WitsView's panel price survey for the second half of October, in the monitor segment, which is already relatively saturated (more than a 90% market penetration rate), panel prices dropped by 5-6% (US$5). Supported by the PC desktop replacement effect, notebook panel prices slipped by a smaller 2-4% (US$2-3). TV panel prices, which still have some room for further cost down, fell by 2-6% (US$10-15), as panel makers are trying to obtain more orders aimed for the year-end holiday sales.

Due to the deteriorating conditions in the global economy, thereby seriously impacting corporate and consumer confidence, end market demand has seen no notable improvement. Although panel inventory continues to be digested, thanks to the Taiwan panel suppliers' lower utilization rates, panel price pressure is still evident. This primarily stems from the conservative panel ordering and relevant inventory adjustments in October.

In the fourth quarter this year, panel makers will face even bigger financial challenges. Amid sluggish market demand, panel prices could continue to trend downward, said WitsView analysts.