According to a recent DigiTimes report, the coronavirus outbreak is expected to have lowered global display panel production by 20% in February 2020. Citing unnamed "industry sources," it said output will only be 5-10% lower in March.
- Can you get coronavirus from a package?
- Coronavirus tech show cancellations: what’s gone, what’s still on
The backend LCD module (LCM) plants of AU Optronics (AUO) and Innolux in China are also said to have seen lower output due to an insufficient number of workers returning after the Lunar New Year holiday.
The lower panel output across the industry has led to an increase in prices of $4 to $5 for 55-inch TVs, and $2 to $3 for 32-inch, 43-inch and 65-inch TVs, DigiTimes said.
Meanwhile, prices of monitor panels have reportedly remained stable in February, following a continuous decline over the past year. The coronavirus outbreak has also reportedly led to a 20% drop in supply for monitor panels.
The prices of panels for laptop screens have also remained stable, even though their production decreased by 30% in February, DigiTimes said.
Around 30%-40% of the smaller display panel makers in China also haven’t gained approval to resume their operations, so material and component shortages are expected to last for at least the next two months.
Major Chinese smartphone brands, such as Huawei, Xiaomi, Oppo and Vivo, are also expected to reduce their orders due to an already high stock at distribution channels in China.
The COVID-19 outbreak should also lower the sale of 5G smartphones from 125 million to 115 million in China and from 220 million to 210 million globally, according to DigiTimes sources.