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LCD Panel Pricing on the Rise

By - Source: IHS iSuppli | B 19 comments

Prices for LCD panels with a size greater than 10 inches is believed to have climbed in June, despite continued weak consumer demand.

According to IHS iSuppli, the problem is still the impact of a disruption of manufacturing in Japan. The market research firm said that June prices climbed by average about 0.2%, the first time all three major segments - desktop, notebook and TV - experienced an increase in prices in 14 months. Desktop displays were up 0.1%, TV LCDs 0.2% and notebook displays 0.5%. While these increases seem to be moderate, iSuppli noted that they are average numbers and that there have been considerable increases in some individual segments (which were not mentioned.)

The company stated that there is an expectation of improving sales due to the preparation for the back-to-school and holiday shopping season, but there seems to be an uncertainty just how much positive effect those events will have. Inventory levels are up

“Consumer demand for the major products using LCD panels, like televisions and computers, remains weak, especially in the United States and Europe,” said Sweta Dash, senior director for liquid crystal displays at IHS. “Despite this alarming sales situation, pricing is on the rise for all of the major LCD applications with panel buyers replenishing their stockpiles in order to build buffer inventory, in case of further supply disruptions spurred by the Japan disaster, and as panel suppliers reduced utilization rates to control production. This is driving up pricing for panels in all major applications.”

However, iSuppli also noted that the primary concern for the LCD market remains "the sluggish state of demand among consumers in the United States and Europe." Apparently, demand is low enough to provide a compelling reason for manufacturer not to return to full production quickly and prompt LCD vendors to lower their sales forecasts overall.

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  • 20 Hide
    a1b2c3 , July 8, 2011 5:20 PM
    So that $500 display I've been eye-ballin' will now cost me $500.50? Now it's over my budget. I shouldv'e bought early!
  • 12 Hide
    Humans think , July 8, 2011 9:50 PM
    OK so they didn't figure out why this is happening. Let's tell them why

    I got a 15" 4:3 CRT monitor in 1997 800x600
    I got a 19" 4:3 CRT monitor in 2003 1024x768
    I got a 17" 4:3 TFT monitor in 2006 1280x800
    I got a 24" 16:10 TFT monitor in 2009 1920x1200
    In all these purchases I used the same money or the same buying power.

    Now give me a reason to upgrade. If they don't come up with a new technology (with substantial differences) or a bigger screen with higher resolution making it meaningful to upgrade, they won't see income. And 3D is not a reason for most to upgrade. So much money invested in consumer 3D technology that could be used elsewhere...
  • 11 Hide
    wintermint , July 8, 2011 6:00 PM
    a1b2c3So that $500 display I've been eye-ballin' will now cost me $500.50? Now it's over my budget. I shouldv'e bought early!


    Assuming you meant LCD Display at $500.. $500 x 1.002% = $501 lol nice math :p 
Other Comments
  • 20 Hide
    a1b2c3 , July 8, 2011 5:20 PM
    So that $500 display I've been eye-ballin' will now cost me $500.50? Now it's over my budget. I shouldv'e bought early!
  • 6 Hide
    Marco925 , July 8, 2011 5:59 PM
    a1b2c3So that $500 display I've been eye-ballin' will now cost me $500.50? Now it's over my budget. I shouldv'e bought early!

    if you were reading, they said that was an average figure, and other segments have risen considerably
    Quote:
    iSuppli noted that they are average numbers and that there have been considerable increases in some individual segments (which were not mentioned.)
  • 11 Hide
    wintermint , July 8, 2011 6:00 PM
    a1b2c3So that $500 display I've been eye-ballin' will now cost me $500.50? Now it's over my budget. I shouldv'e bought early!


    Assuming you meant LCD Display at $500.. $500 x 1.002% = $501 lol nice math :p 
  • 0 Hide
    clonazepam , July 8, 2011 6:34 PM
    So if they stockpile it could mean we see the same products or "repackages" of the same tech for a bit longer until the newer better tech arrives? Ah well... I'm still waiting for bezel-free or nearly gone. I could think of a few companies, particularly one with a 4 letter acronym currently eyeballing the heavens, could prob make some extra cash helping out us poor very small segment of gamers... Hey, I can dream.
  • -1 Hide
    1fastbiker , July 8, 2011 8:29 PM
    Doug, prices on the rise by 0.2%. That is news? Since when did 0.2% of a relatively "soft" number far within statistical errors become news?!?!
  • 3 Hide
    Darkerson , July 8, 2011 9:03 PM
    Marco925if you were reading, they said that was an average figure, and other segments have risen considerably

    If you were reading, he was just making a joke :p 
  • 0 Hide
    rosen380 , July 8, 2011 9:31 PM
    On the assumption [that I believe is correct] that these things tend to get cheaper over time, +0.2% might not be relative to 0, but maybe -0.8% [or something]. If that is the case, then relative to expected current price levels, maybe we're talkign a full extra percent?

    Also, are these price changes at the consumer level or at the supplier level? If the latter, then with each company between you and the manufacturer of the LCD also tacking on a mark-up. So take that 1% I proposed earlier. Now add another 25% for what HP [or whomever] adds to it when they sell to Best Buy [or whomever]. Now were at +1.2%. Add another 20% mark-up for the retailer and it is 1.44%...

  • 12 Hide
    Humans think , July 8, 2011 9:50 PM
    OK so they didn't figure out why this is happening. Let's tell them why

    I got a 15" 4:3 CRT monitor in 1997 800x600
    I got a 19" 4:3 CRT monitor in 2003 1024x768
    I got a 17" 4:3 TFT monitor in 2006 1280x800
    I got a 24" 16:10 TFT monitor in 2009 1920x1200
    In all these purchases I used the same money or the same buying power.

    Now give me a reason to upgrade. If they don't come up with a new technology (with substantial differences) or a bigger screen with higher resolution making it meaningful to upgrade, they won't see income. And 3D is not a reason for most to upgrade. So much money invested in consumer 3D technology that could be used elsewhere...
  • 2 Hide
    jn77 , July 8, 2011 11:14 PM
    I have been looking at new lcd's but what is really new? Less than 1 ms lag time? 120 and 240 htz laptop screens, per pixel led back lighting, Give me some new things I want rather than re-hashing all the old junk in a new package and model number.... What happened to R&D Budgets
  • 6 Hide
    soccerdocks , July 8, 2011 11:46 PM
    Its not LCD display. That would be liquid crystal display display.
  • 9 Hide
    zybch , July 9, 2011 12:14 AM
    soccerdocksIts not LCD display. That would be liquid crystal display display.

    Just like I used the ATM machine yesterday and it asked me for my PIN number.
  • 4 Hide
    cybrcatter , July 9, 2011 2:03 AM
    wintermintAssuming you meant LCD Display at $500.. $500 x 1.002% = $501 lol nice math


    Technically $500 x 1.002% = $5.01.

    $500 x 1.002 = $501.
  • 1 Hide
    demonhorde665 , July 9, 2011 3:18 AM
    Humans thinkOK so they didn't figure out why this is happening. Let's tell them whyI got a 15" 4:3 CRT monitor in 1997 800x600I got a 19" 4:3 CRT monitor in 2003 1024x768I got a 17" 4:3 TFT monitor in 2006 1280x800I got a 24" 16:10 TFT monitor in 2009 1920x1200In all these purchases I used the same money or the same buying power.Now give me a reason to upgrade. If they don't come up with a new technology (with substantial differences) or a bigger screen with higher resolution making it meaningful to upgrade, they won't see income. And 3D is not a reason for most to upgrade. So much money invested in consumer 3D technology that could be used elsewhere...




    WOW a 19 inch CRT with jsut a 1024x786 res .. damn ... you got riped , every 19 inch CRT i ever owned had a amx res of 1600x1200 not 1024x768
  • -4 Hide
    doped , July 9, 2011 4:37 AM
    demonhorde665WOW a 19 inch CRT with jsut a 1024x786 res .. damn ... you got riped , every 19 inch CRT i ever owned had a amx res of 1600x1200 not 1024x768

    YO DAWG, I HEARD CRT'S GOT USED AT LOWER THAN MAX RESOLUTION SO YOUR EYES WOULDN'T BLEED AND YOU COULD MAKE OUT WHAT WAS ACTUALLY SHOWING ON SCREEN INSTEAD OF SOME STUPIDLY HIGH UNREADABLE DPI ON SOME NEW LCD'S WHERE YOU CAN'T JUST LOWER THE RESOLUTION OF THE RESOLUTION OF THE SCREEN'S RESOLUTION...
  • 5 Hide
    pocketdrummer , July 9, 2011 8:53 AM
    What they really need to do is get on the ball with quality. Color accuracy shouldn't be as abysmal as it is on most TN panels. Not to mention, uniformity and response time.

    The problem is that there isn't any real outline for how companies measure performance, so the consumer doesn't know how to spend his/her money. Thus, better brands aren't purchased and competition for better products is slowed.

    We need screens with better color, wider viewing angles, faster refresh rates, and quicker response times. Otherwise there's no real need to upgrade your monitor.
  • 0 Hide
    upgrade_1977 , July 9, 2011 5:49 PM
    Yaay....
  • 0 Hide
    enzo matrix , July 10, 2011 2:45 AM
    Humans think17" 4:3 TFT monitor in 2006 1280x800
    I got a 24" 16:10 TFT monitor in 2009 1920x1200

    1280x800 is 16:10, not 4:3
  • 0 Hide
    Bristecom , July 11, 2011 2:25 AM
    So the LCD market works in the opposite way of every other market? When demand is lower, the prices rise? Interesting... That makes no sense. If anything, the prices will rise due to inflation or the lack of supply from Japan. But there is plenty of competition coming from Korea and elsewhere in Asia.
  • 0 Hide
    Bristecom , July 11, 2011 2:36 AM
    pocketdrummerWhat they really need to do is get on the ball with quality. Color accuracy shouldn't be as abysmal as it is on most TN panels. Not to mention, uniformity and response time.The problem is that there isn't any real outline for how companies measure performance, so the consumer doesn't know how to spend his/her money. Thus, better brands aren't purchased and competition for better products is slowed.We need screens with better color, wider viewing angles, faster refresh rates, and quicker response times. Otherwise there's no real need to upgrade your monitor.

    LG stated a little while ago that it would only go with IPS panels in 2012. And Samsung will likely make the shift to PLS panels in the next couple of years. Not to mention, we'll eventually be seeing AMOLED displays on the market. So I see a move in the right direction for the LCD monitor market. Companies will have to start competing for display quality and featuers (like 3D) instead of little things like "theoretical 2ms response time after compensation."