Rebecca Kuo, Tainan; Rodney Chan, DIGITIMES [Tuesday 15 July 2008]
LCD panel makers are reducing their utilization rates while expecting prices to stabilize in August, as clients' inventory levels should start running low and related orders will begin picking up as system makers look to meet demand during the high season, according to industry sources.
The sources noted that brand-name vendors and system makers have already been able to digest parts of their panel inventory, making it likely that panel prices in August will drop slightly or stay flat.
Panel prices dropped sharply in the beginning of July. Citing Hewlett Packard (HP) as an example, the sources claimed the PC vendor asked that the quote for 15.4-inch notebook panels be reduced to US$90 from US$98, a demand that suppliers accepted.
The sources said panel makers are reducing their output in order to help stabilize prices. They said first-tier notebook clients' panel inventory levels have already dropped to 5-6 weeks, and stronger demand can be expected to appear in August to help maintain stable prices.
But it is now a buyer's market for panels, and no matter how low the quotes may be, suppliers will not receive orders unless clients have solved their inventory issues, the sources commented.
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