LCD panel producers lower revenue targets for 2013 as PC/TV sales wobble

Poor PC and TV sales are having a ripple-effect up the supply chain as panel makers trim back shipments and revenue targets for 2013, claims a report by NPD DisplaySearch.

Overall, panel makers responsible for producing panels 9-inch and larger have trimmed 7 percent off the estimated shipment total for the year, from 710 million units to 698 million units. This comes at an unusual time, since demand for devices, and as such panels, is usually stronger during the second half of the year.

According to David Hsieh, vice president of NPD DisplaySearch, "the over-supply of LCD panels that occurred in June 2013 has caused panel makers to be more conservative in their 2013 shipment estimates.”

Panel shipment volume is seen as a leading index for the majority of commercial and consumer electronics devices, since most devices feature an LCD panel.

"Achieving nearly half of the 2013 annual target indicates that large-area TFT LCD seasonality has stabilized," Hsieh noted. "Focusing on high-value products with the latest technology, such as 4K×2K, larger sizes, high color gamut, ultra-slim form factor, and environmental concerns, will add more to manufacturer revenues than pure unit-shipment numbers from now on."