The oversupply in the fourth quarter is expected to total 6.2 percent, said U.S. research group iSuppli, raising its estimate from an earlier 4.2 percent.
The forecast contrasts with what panel makers have said.
But iSuppli said already in the third quarter production would outrun demand by 5 percent. “This glut is expected to cause pricing for LCD-TVs and desktop PC monitor panels to decline in the coming months,” it said.
The oversupply will continue at similar levels until the fourth quarter of 2006, iSuppli predicts.
Exacerbating the effect was slower-than-expected production of flat TVs and computer monitors, and sluggish sales. Shipments of LCD monitor panels outstrip sales of actual monitors, and inventories of 19-inch panels are beginning to accumulate.
Many of the panels sold in the first half were shipped to B-brand TV and monitor set makers, which were purchasing in anticipation of strong holiday demand in the fourth quarter.
“However, rising energy prices, lower consumer confidence and slower economic growth may slow the increase in demand,” iSuppli said.
To make matters worse, an expected transition of demand to larger-sized TFT-LCD panels is progressing more slowly than expected.
Maybe, now, John will buy a flat-panel TV — or a computer for his kitchen to organize his recipes?
Unfortunately they’ll pass on the savings in the form of large rebate checks that you may or may not get after 4 months.
Best buy has a $1000 “price reduction” on one of their larger screens. And Wall Street talk is that this Xmas season will see real price compettion on th epart of manufacturers. The time is finally arriving where buying one of these things, for reasons besides saving space or making a fashion statement, may actually be reasonable.
BTW… word is that the actual manufacturers will make little or nothing on these screens, so it’s a bad stock investment. But all of the manufacturers use a handful of suppliers, and demand may be high, so that may be a good place to put some money… and maybe use the gain to actually buy a new set.
Woohoo…so I can expect a good price on a new 19″ LCD for the holidays. Hopefully, memory will also be in an oversupply state so I can get that for a bargain also.