Panel price decline may exceed expectations

Xie Qinyi, deputy general manager of DiplaySearch Greater China, said panel prices have fallen more than expected since August. From the fall in August, the monitor panel fell by 5% to 7%, the notebook panel fell by 3% to 4%, and the TV panel fell by 4% to 5%, while the original estimate of the average decline should fall. Between 3% and 4%. The original panel factory believes that in September, when the demand in the peak season comes, the price may stop, and it seems that there is not much chance of stopping. It is estimated that the panel price will fall more than expected. The fastest two to three months, the panel price will fall to the cash cost, causing the panel factory to fall into serious losses. The insiders described the price drop in this panel as fast and large, not a downward revision of the general panel price, but a panic crash.

Xie Qinyi's analysis has caused five reasons for the overcapacity of this wave panel, including: excessive inventory, brand factories hope to improve gross profit margin, demand for panel price cuts, weak market demand in China, too optimistic in the first half of the year, leading to full capacity, and Korean panel factory The full capacity of production, the price of the market and other factors caused by factors. However, Xie Qinyi pointed out that the faster the panel price declines, it also means that the strength of the rebound will soon come, especially when the price falls to the cash cost, resulting in a net cash outflow of the LCD factory, the panel factory will not reproduce, then the inventory level Low, the panel price is very cheap, but will make the economy rebound quickly, it is expected that the fourth quarter will be the rebound time.

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