Since the second half of last year, panel prices have fallen straight, and prices in the third quarter of this year have stabilized. However, TV panel prices have loosened in the fourth quarter, and TV panel prices will fall in November and December.
In the first quarter of 2019, the 11th generation of Huaxing Optoelectronics Co., Ltd. will be mass-produced. Since then, the SDP 10.5 foundry of Hon Hai Group and the 8.6-generation plant of Huike Cangzhou have been put into production, and the pressure of oversupply is great. It is estimated that the large-size panel production capacity will increase by about 10.7% in 2019, but the demand growth rate is only about 2.4%. The annual oversupply ratio is about 8.1%, and the ratio of oversupply in the first quarter is as high as 18.2. %, set a record high. It is expected that this wave of panel price declines will continue until May 2019, and will not stabilize until the middle of the year.
This year, after the first 10.5-generation factory of BOE was put into production, it locked in the production of 65-inch and 75-inch large-size TV panels. The supply volume has been catching up, making the price straight down this year. The 65-inch TV panel has a price of $400 last year. It has already dropped below $250, a drop of more than 40%. The 75-inch panel last year was still at a high of $750, and has recently slipped to $530-540, a drop of nearly 30%. . The oversized panel prices are rapidly falling, and are expected to accelerate the popularity of 65-inch and 75-inch TVs.
The 65-inch, 75-inch model is economically cut at the 10.5-generation plant. Under the capacity of BOE, the overall 65-inch panel shipment growth rate this year reached 27.1%.
Last year, Samsung, LGD, AUO, and Innolux's four panel makers accounted for 97.3% of the total market share of 65-inch panels. This year, the market share of BOE is expected to exceed 10%, surpassing Innolux's 8.6%. In 2019, the market share will increase to 14%, which is almost equal to AUO. It is the third largest supplier and breaks the monopoly of Taiwan-Taiwan panel factory. BOE's 75-inch panel market share is only 3.4% this year, and will climb to 16.3% in 2019, which will surpass the panel double tiger.
Faced with the pressure of capacity competition in the mainland panel factory, WitsView research associate Fan Bozhen said that the Korean panel factory continued to switch to OLED investment. LGD abandoned Guangzhou's 10.5-generation LCD production line to OLED panel. Samsung also plans to adjust the LCD panel production capacity. The future of the panel will strengthen the layout of the whole machine and system.