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LCD Panel Pricing on the Rise

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.

  • a1b2c3
    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!
    Reply
  • Marco925
    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
    iSuppli noted that they are average numbers and that there have been considerable increases in some individual segments (which were not mentioned.)
    Reply
  • wintermint
    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
    Reply
  • clonazepam
    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.
    Reply
  • 1fastbiker
    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?!?!
    Reply
  • Darkerson
    Marco925if you were reading, they said that was an average figure, and other segments have risen considerablyIf you were reading, he was just making a joke :P
    Reply
  • rosen380
    On the assumption that these things tend to get cheaper over time, +0.2% might not be relative to 0, but maybe -0.8% . 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 adds to it when they sell to Best Buy . Now were at +1.2%. Add another 20% mark-up for the retailer and it is 1.44%...

    Reply
  • Humans think
    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...
    Reply
  • jn77
    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
    Reply
  • soccerdocks
    Its not LCD display. That would be liquid crystal display display.
    Reply