LCD TV Brands Reduce Production in Q1'11: DisplaySearch

Taipei, Jan. 21, 2011 (CENS)--Major LCD TV brands have adjusted their first-quarter 2011's production plans downward, according to findings in DisplaySearch's latest research report.

The major display-market research firm pointed out that top-16 LCD TV brands, including global brands, such as Samsung and regional players like Konka in China, have reduced their combined monthly production plan from 18.3 million in November 2010 to 15.4 million units in March 2011. Overall, in the first quarter of 2011 production is forecast to be 46.3 million units, a 12% quarter-on-quarter (QoQ) decline from the fourth quarter of 2010.

Despite the cautious stance of the TV brands, LCD TV sub-contract manufacturing (OEM/ODM) companies are increasing their monthly shipments from December 2010 to March 2011, DisplaySearch said. This indicates that TV brands are increasing outsourcing manufacturing to OEM/ODM companies, which is driven by cost management, logistics, manufacturing scale, and in some cases, access to panel supply, the firm explained.

Analysis in the DisplaySearch's latest MarketWise also includes other observations about LCD industry dynamics. The supply of key thin film transistor-liquid crystal display (TFT-LCD) panel components, such as glass substrates, color filters, polarizers, LED and light guide plates, is generally in balance in the first quarter of 2011, DisplaySearch said, while January large-sized (over 10 inch) TFT-LCD panel shipments would fall 2% from December 2010, due to adjustments in capacity utilization rates, and decline a further 7% month-on-month (MoM) in February due to fewer working days in China. However, panel makers expect a big jump in March, with shipments passing 60 million units.

The top-10 LCD monitor OEMs plan to increase their production in January by 4.3% MoM, to more than 14 million units. However, they plan to reduce February and March production to just over 12 million units. LCD TV panel shipments to China were 5.1 million units in November, and fell to 5.0 million units in December. DisplaySearch forecast shipments would continue to fall to 4.6 million in January and 3.2 million units in February.