WitsView's latest tv-panel shipment survey showed a stronger-than-expected 12% quarterly and 8.2% annualized drop in shipments of 64.253,000 units in the first quarter.Panel supply returned to normal in the second quarter, but the epidemic spread around the world and impacted the end demand. It is estimated that the quarterly increase rate of TV panel shipment in this quarter is only 2.3%, compared with the decline of 7.1% in the same period last year, reflecting the negative impact of the epidemic on the end market.
March coincides with the end of the season, plus the lack of TV panel material problem has been roughly solved, panel factory actively sprint shipment, led to panel shipment than February growth of 16.4% to 233.371 million pieces.WitsView said it shipped 64.253 million tv-panel units in the first quarter. While the quarterly and annual declines were 12.0 percent and 8.2 percent, respectively, they were only 4.9 percent below the shipment target set at the beginning of the year, beating market expectations and suggesting the impact of the outbreak on supply is over.Into the second quarter, the focus of observation has shifted to end market demand.
WitsView noted that the rapid spread of the disease in Europe, the United States and emerging Asia, countries have been declared closed and locked, and the overall economic environment is not optimistic will lead to a downturn in terminal sales.Second quarter TV panel shipments are expected to show growth in the quarter due to a lower base period in the first quarter, but as buyers become more conservative, quarterly growth is expected to be just 2.3 percent to 65.75 million units and annual decline of 7.1 percent, reflecting a lack of demand momentum.
With the end of the market demand turned light, the panel factory to reduce the grain rate of the noise again, but WitsView believes that at this stage, the grain is not the best choice.There are three reasons, first of all, since the beginning of the year after the price rise, most of the size of the television panel quotation is still higher than the cash cost, if at this point in the fall grain movement, does not conform to the operating principle of profit maximization.
Secondly, Work From Home drives the short time demand of IT panel to increase, some panel factories can support by adjusting the product portfolio.Third, the Korean panel factory in the fourth quarter of this year will reduce the LCD panel production line, then the supply chain and the panel factory market share may be shuffled, for the efforts to expand the market share of China's first-tier panel factory, it is unlikely to choose at this time to reduce, and strive to maintain the market share of Taiwan panel factory, will not rashly move.
Overall, WitsView think, in the second quarter panel factory slashed the probability of every move is not high, but South Korea panel factory since announced convergence LCD panel production line, from attack to keep operating thinking, in the face of the TV panel price pressure increases, sure can reduces the stipulated in the second half of the cast piece plan in advance to the second quarter, as resisting the depreciation methods at the same time, also make Korea panel factory ones are adjusted in the second quarter's largest supply of variables.