The COVID-19 New Coronary Pneumonia epidemic is spreading all over the world, and many countries have begun to take measures such as closing cities and stopping production at factories to control the further infection of the virus. In the first quarter, the supply of materials for some small and medium-sized panels in the supply chain was tight, and human operating costs increased, but overall panel demand also declined. Therefore, the overall smartphone panel prices in February and March showed a stable trend. In the second quarter, due to the suspension of production in various regions and the demand for small and medium-sized panel-related applications has been greatly reduced. In addition to smartphones, car panels have also been shut down due to the suspension of local car manufacturers. Demand has dropped sharply. This year, overall shipments will face negative growth. Only tablet computers have increased demand due to online learning and online work. The off-season this year is not light, and prices remain stable.
The global economy and consumption have been hit hard by the new coronary pneumonia, and the demand for smartphones will inevitably decline. Millet, Samsung and other brands have reduced panel orders. In April, the price of mobile phone panels fell slightly. CINNO Research estimated that the price of LCD mobile phone panels fell by about 0.1 to 0.2 US dollars, and the price of AMOLED mobile phone panels fell by about 0.5 to 1.0 US dollars.
Affected by the new Coronary Pneumonia epidemic, the Indian factory began to suspend production from March 23 to mid-April, and now it is extended to May 3 again. Expectations for future market demand are declining, and brands such as Xiaomi and Samsung have experienced panel cuts. The delay in mass production of the new aircraft. CINNO Research pointed out that the first-line mobile phone panel suppliers BOE and Tianma, etc., customers are mainly first-line mobile phone brands, the capacity utilization rate of a-Si panels and LTPS panels in April can still be maintained at more than 80%, while other non-brand customers Panel suppliers have reduced their capacity utilization rates for small and medium-sized panels in April due to reduced demand.
Apple iPhone SE2 is expected to be released at the end of April, and Japanese panel manufacturer Sharp, as its main supplier of panels, has benefited the most. The capacity utilization rate increased significantly in April. South Korean panel manufacturer LGD plans to gradually stop supplying LCD liquid crystal panels for mobile phones to Apple from the second quarter of 2020. Orders for LCD panels for iPhone will be concentrated with Japan Display JDI and Sharp. AMOLED panels required for other iPhone models will also drop in the second quarter due to reduced demand.
Due to the decline in demand for smartphones and the delay in the shipment of new products, CINNO Research estimates that the price of a-Si / LTPS mobile phone panels will decline by approximately US $ 0.1-0.2 in April, and the price of AMOLED mobile phone panels will decline by approximately US $ 0.5-1.0.