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Weak IT Market Drags Down Large-Area Display Market
August 12, 2015 | IHSEstimated reading time: 1 minute
Due to decreased information technology (IT) demand, and global currency issues that resulted in higher import prices in most regions, overall large-area TFT LCD unit shipments in the first half (H1) of 2015 fell 2 percent year over year to reach 340 million units. Display shipments for tablet PCs fell 17 percent, notebook PC displays declined 6 percent, and PC monitor displays fell 8 percent, while LCD TV panel unit shipments increased by 11 percent, according to IHS Inc. (NYSE: IHS),the leading global source of critical information and insight.
“IT panel makers suffered from poor demand and excess inventory from last year, while aggressive procurement by global TV brands kept TV panel demand high,” said Yoonsung Chung, director of large area display research for IHS Technology. “Actual TV sell-in over the first half of this year is still lower than expected, however, due to frozen demand caused by global currency exchange issues.”
TV panel prices were high in H1 2015 and, as a result, TV brands suffered, while IT panel pricing followed market demand, according to the latest IHS Large Area Display Market Tracker. “With the lower-than-expected TV sell-in, TV makers are expected to have higher inventories. This will result in a decrease in TV panel demand, which will weigh on TV panel prices in the second half of 2015,” Chung said.
Large-area TFT LCD shipments in terms of area grew 8 percent year over year, reaching 77 million square meters in H1 2015. TV panels comprised three quarters (77 percent) of all TFT LCD area shipments, but only 39 percent of unit shipments. “Comparatively stable TV shipment area in the first half of 2015 helped TFT LCD panel makers maintain utilization and profits despite declining IT panel demand,” Chung said.
About IHS
IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
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