(August 12, 2010) — Shipments of large area (9.1" and larger) TFT LCDs climbed to achieve a quarterly record high 170 million units, with 9% Q/Q and 31% Y/Y growth rate. The revenues reached $22.9 billion, which was the second-highest quarter on record. According to the latest "Quarterly Large Area TFT LCD Shipment and Forecast Report," panel makers are aiming to continue shipment growth in the second half of the year despite the recent drop in panel prices and supply chain inventory adjustments.
“The TFT LCD industry reached new heights in Q2’10, as with shipments reaching new heights and suppliers producing at full capacity thanks to strong purchasing and inventory preparation by downstream customers,” noted David Hsieh, Vice President, Greater China Market, DisplaySearch. “Despite this, over-optimism throughout the supply chain in Q2 is causing adjustments in Q3 as panel prices have fallen amid cuts in panel orders and unclear demand forecasts.”
All TFT LCD applications experienced Q/Q growth in Q2, with the exception of the public display panels. Growth in LCD monitor panel shipments, which started to slide in June, was the smallest among the three major TFT LCD applications. Shipment of panels for notebook PCs, including mini-notes and slate type PCs, was the strongest, with 15% Q/Q growth. Meanwhile, panels for LCD TVs, including <26” LCD monitor panels used for TVs, reached 55 million units—a new record.
|Original specification*||Application||Q1’10 shipments||Q2’10 shipments||Q/Q growth||Y/Y growth|
|LCD Monitor||LCD Monitor||49.5||50.9||3%||8%|
|LCD Monitor||LCD TV||4.1||4.1||-1%||-1%|
In Q210, Samsung Electronics led in large-area TFT LCD panel shipments on a revenue basis, with sales of $6 billion, capturing a 26.3% revenue share. LG Display ranked second, with $5.4 billion in revenues, or 23.4%. AUO was third at $3.7 billion with a 16.2% share, with Chimei Innolux closely following with a 15.8% share at $3.6B.
LG Display took first place on a shipment basis in the second quarter, while Samsung shipped the most by area. On a unit basis, Korea was the largest supplier of large-area TFT LCD panels in Q2’10 with a 46.5% share, compared to 47.2% in Q1’10. Taiwan’s share slightly fell from 42.7% in Q1’10 to 42.5% in Q2’10. China’s share increase from 4% in Q1’10 to 5% in Q2’10. Table 2 shows the Q2’10 shipment ranking of large-area TFT LCD panels by application.
|Rank||Notebook PC||Mini-note/slate*||LCD Monitor**||LCD TV**||Public display||Others||Overall|
|1||LG Display||LG Display||LG Display||Chimei Innolux||Samsung||Sharp||LG Display|
|3||AUO||AUO||Samsung||LG Display||LG Display||LG Display||Chimei Innolux|
Looking forward, panel makers are targeting continuous shipment growth in Q310 as a result of falling panel prices. This will encourage downstream customers to purchase more panels once they adjust inventories. Meanwhile, most brands will increase their panel purchases and production in the coming months to prepare for seasonal sell-through demand in Q4. Panel makers are targeting 8% Q/Q shipment growth in the third quarter; this means panel makers are expecting to ship a large amount of panels in September, as July and August shipments are expected to decline.
Other key trends are described in detail in the Q310 Quarterly Large Area TFT LCD Shipment and Forecast Report, including:
- 2.8 million 9.7” panels were shipped for the iPad in Q2’10; these panels continue to be in tight supply. Samsung and LG Display are the main suppliers, and jointly plan to ship 15 million panels this year. However, excluding 9.7” slate type PC panels, mini-note PC panel shipments declined from Q1 to Q3 and are expected to continue to fall in 2H’10.
- In terms of area, Q2’10 shipments were a record 27 million square meters, 8% Q/Q growth.
- Excluding <26” LCD monitor panels used in LCD TVs, Samsung is the leader of LCD TV panel shipments.
- The average area price in Q2’10 was $849 per square meter, which increased slightly from $836 in Q1’10. However, due to panel price drops, it is expected to fall below $800 in Q3’10.
- The average diagonal size was 21.9” in Q2’10, compared to 22.0” in Q1’10.
- LCD TV accounted for 64% of shipment area, while LCD monitor was 22% and notebook PC/slate was 13%.
DisplaySearch is a global market research and consulting firm specializing in the $770 billion display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. For more information, visit http://www.displaysearch.com/
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. For more information, visit http://www.npd.com/
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