Global LCD supply and demand - Q204

Despite an increase in large-sized LCD panel unit shipments of 17 percent in the second quarter compared to the first, demand fell short of expectations, spurring an oversupply in the market.

An oversupply of 6.4 percent emerged in the second quarter, owing to disappointing demand and faster additions to supply. The oversupply situation is expected to persist through the third quarter as eight new LCD fabs are expected to start production this year.

The figure below and attached presents iSuppli/Stanford Resources’ forecast of large-sized LCD supply/demand in 2004.



Source: iSuppli Corp. August 2004

Panel prices are coming down significantly for LCD TVs. However, consumer prices are still not low enough for demand to meet suppliers’ expectations. Disappointing demand in the first half forced suppliers to reduce their 2004 demand forecasts.

For the LCD desktop monitor market, inventories that built up in the distribution channels are slowing panel demand. For notebook PCs, the demand for 15.x-inch LCD panels was softer than usual in the first half of 2004.

Softening of demand, abundant supply and easing of component shortages will lead to price declines across all sizes in the third quarter, iSuppli/Stanford Resources predicts.

What are the major supply/demand trends in the flat-panel TV, PC desktop monitor and mobile computing in 2004?
What is the expected capacity of the LCD fabs that soon will come on line?
Which LCD panel sizes are most in oversupply?

Find the answers to these questions and many more in the new iSuppli/Stanford Resources report entitled: Global LCD Supply and Demand-Q204.

For More Information, Please Contact:
Jonathan Cassell, Editorial Director and Manager, Public Relations
iSuppli Corporation - Office: 408.654.1714
www.isuppli.com