Q2’11 Large-Area TFT LCD Shipments and Revenues Increased by 11%

Panel Makers Targeting 7% Q/Q Growth for Q3, But a Flat Q4

Sort Date: 08162011

SANTA CLARA, Calif., August 16, 2011—Shipments of large-area TFT LCD panels increased to 180.8 million units in Q2, growing by 11% Q/Q and 6% Y/Y. Revenues reached $19.3 billion, also 11% growth Q/Q, but 16% decline Y/Y. According to the DisplaySearch Quarterly Large-Area TFT LCD Shipment Report, panel makers are targeting a modest 7% growth in shipments for Q3 as downstream manufacturers and brands are expected to prepare for the holiday season. However, growth in Q4 is expected to be flat.

“The TFT LCD industry has been in oversupply for more than a year, and Q1’11 was at the bottom of the cycle. Prices rebounded slightly in Q2, and both shipments and revenues increased. However, this was just a short-term rebound, as stagnant economic conditions and low consumer confidence continue to exert a drag on demand, especially for IT products and TVs,” noted David Hsieh, Vice President, Greater China Market, DisplaySearch. “Panel makers did not achieve their goal of growing Q2’11 shipments 18% Q/Q, and slow demand is eroding panel prices in Q3.”

Most LCD TV set makers are reducing 2011 panel demand forecasts in order to trim costs and maintain low inventory levels. Panel prices are becoming more negotiable due to the concern over weakening demand, and falling prices will encourage panel makers to cut capacity utilization in 2H’11. This is likely to persuade panel makers to set conservative shipment targets. This is abnormal for second half shipment targets, which typically aim for strong growth.

In Q2’11, all applications experienced Q/Q growth, and tablet PCs showed the strongest momentum with 88% growth Q/Q and 386% Y/Y. Monitor and notebook PC shipments grew by 3% and 11% Q/Q, respectively but both were flat Y/Y. LCD TV panel shipments grew by 7% Q/Q, while mini-note PC panel shipments grew 5% Q/Q. Despite 7% Q/Q growth, TV panel shipments suffered a 4% Y/Y decline. The decrease in panel prices at the end of July and beginning of August has caused panel makers to become concerned about 2H’11 conditions.

Table 1: Q2’11 Large-Area TFT LCD Shipments by Application (Millions)

Application

Q2’10
Shipments

Q1’11
Shipments

Q2’11
Shipments

Q/Q
Growth

Y/Y
Growth

LCD Monitor

50.9

49.4

51.0

3%

0%

Notebook PC

48.9

44.0

48.9

11%

0%

Mini-Note

9.1

8.7

9.2

5%

1%

Tablet

3.2

8.3

15.6

88%

386%

LCD TV

55.0

49.4

52.7

7%

-4%

Public Display

0.4

0.5

0.7

42%

54%

Others

2.7

2.8

2.8

1%

5%

Total

170.2

163.1

180.8

11%

6%

Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report

In terms of revenues, all applications experienced Q/Q growth in Q2’11 due to stabilized panel pricing. Tablet PC and public display panel revenues showed the strongest growth, at 64% and 28% Q/Q, respectively. However, Y/Y revenue growth for monitor, notebook PC and TV panels were all negative. Due to an increase in shipments, panel makers are targeting 11% growth in revenues in Q3’11.

Table 2: Q1’11 Large-Area TFT LCD Revenues by Application (Billions)

Application

Q2’10
Revenues

Q1’11
Revenues

Q2’11
Revenues

Q/Q
Growth

Y/Y
Growth

LCD Monitor

$4.5

$3.5

$3.8

7%

-16%

Notebook PC

$3.0

$2.1

$2.3

13%

-22%

Mini-Note

$0.3

$0.3

$0.3

5%

-1%

Tablet

$0.3

$0.6

$0.9

64%

259%

LCD TV

$14.3

$10.5

$11.4

8%

-20%

Public Display

$0.2

$0.2

$0.2

28%

20%

Others

$0.3

$0.3

$0.3

1%

-1%

Total

$22.9

$17.4

$19.3

11%

-16%

Source: DisplaySearch Quarterly Large-Area TFT LCD Shipment Report

The DisplaySearch Quarterly Large-Area TFT LCD Shipment Report covers the entire range of large-area panels shipped worldwide and regionally. The report analyzes historical shipments and forecast projections with 100% coverage of panel makers. Authored by industry experts, the Quarterly Large-Area TFT LCD Shipment Report provides some of the industry’s most detailed information and insights. It is delivered in PowerPoint and includes Excel-based data and tables. For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

About DisplaySearch
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the 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. In collaboration with The NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.

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