HS Market's sales analysis shows that in the first quarter of this year, the demand for large-size screens was better than expected.
The first quarter has always been a period of low demand for the panel. TV brand manufacturers usually try to dispose of existing inventory before launching new products. In addition, several major brands no longer focused on volume growth this year, which also reduced the market demand for panel demand.
However, IHS's Large Area Monitor Market Tracking shows that in the first quarter of 2018, shipments of large-size panels were better than expected. Compared with a year ago, shipments of large-size displays (greater than 9 inches) have increased by 6%, and the shipping area has increased by 10%.
LG Display is still the leader in the large-size panel market. In terms of shipping area, LG has a 22% share. Followed by Samsung Display, with a market share of 17%. In terms of unit shipments, BOE holds the top spot with a 22% market share.
Robin Wu, principal analyst of IHS Markit, stated: "In terms of shipping area, Korean panel makers still occupy a leading position in the large-size market due to their strong strength in the TV display market."
In terms of TV monitors, shipments increased by 12% over the same period of last year, and the shipping area increased by 11%. In the first quarter, shipments of 55-inch and above TV panels jumped 20% year-on-year. In the same period, shipments of 4K TV screens also increased by 19% to 24.6 million units, and shipments of OLED TV screens increased by 110% year-on-year to approximately 600,000 units.
Analysts pointed out: "The increase in the production capacity of large-size display panels, especially the increase in China's production capacity, has driven the year-on-year growth in shipments. However, from quarterly shipment growth, you will find an interesting phenomenon."
In the past three years (2015 to 2017), the shipments of large-size displays have fallen by an average of 10% from the previous quarter and the shipping area has dropped by 8% in the first quarter.
“In the first quarter of this year, there was also a 4% decline in shipments and a 7% drop in shipments, but the decline was narrower than last year. This also means that shipments in the first quarter of 2018 were better than expected.”
However, from a value point of view, since the panel price has continued to decline since mid-2017, the shipment amount has dropped by 10%.
Analysts said: "The panel makers are currently mainly concerned with how to make panel prices rise and when they can pick up. TV panels that are increasingly being developed for large-size and high-end products have become the key to this turning point."