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Wednesday, December 5, 2007

PostHeaderIcon Rise of LCD-TV brings seasonality to large-sized LCD panel market

Demand for large-sized LCDs, i.e. panels 10-inches or bigger in the diagonal dimension, was strong in the third quarter, with indications that sales remained healthy through November. Television manufacturers have been snapping up panels, despite increasingly tight supplies.

However, iSuppli predicts the LCD market will enter a state of oversupply in December as demand cools—a situation that will continue into the first quarter of 2008. From there, demand for large-sized LCD panels will begin to ramp up in the second quarter of 2008, with brisk sales continuing up to the fourth quarter.

This follows the seasonal pattern of the television business, with manufacturing rising in the pre-holiday season and peaking in November, then undergoing a slowdown until the second half of the year, when activity starts picking up again. The major factor driving this seasonal pattern is the television manufacturers’ Christmas build period at the end of each year. In the second quarter of 2008, LCD-TV panel demand is expected to be strong due to the Olympics.

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