November large-area TFT LCD shipments reach record highs, up 9 pecent M/M; revenues up 6 percent M/M

SANTA CLARA, USA: November 2010 shipments of large-area TFT LCD panels were 61.4 million units, up 9 percent from October, and revenues were 6.9 billion, up 6 percent M/M, according to the DisplaySearch Monthly TFT LCD Shipment Database.

These results surpassed the previous record reached in May 2010. Furthermore, they were also significantly better than a year ago, as shipments and revenues increased 19 percent Y/Y and 5 percent Y/Y, respectively.

"After a six-month dip in large-area TFT LCD panel shipments, it appears that the industry has recovered," noted David Hsieh, VP of DisplaySearch. "Key indicators have improved. Inventory levels are falling, panel prices are stabilizing and shipments are increasing gradually."

Hsieh added: "Peak shipment levels typically occur in September or October, and this is the first time that the industry has witnessed a peak in November. This is a result of downstream players becoming more confident in their ability to manage inventories after the hot seasonal promotions, while new applications like slate PC are driving the growth of some segments."

All large-area TFT LCD applications showed strong growth from the previous month, with LCD monitor panels showing the strongest growth at 14 percent M/M.

Table 1: Large-Area TFT LCD Panel Shipments and Growth (Millions of Units)Source: DisplaySearch December 2010 Monthly TFT LCD Shipment Database.

Hsieh added: "Notebook and monitor panel prices stabilized last month, and prices for some sizes in tight supply have rebounded. LCD TV panel prices will stop falling next quarter and possibly rebound. Panel makers’ utilization rates, TV panel prices, and low inventory levels are indications of a rebound."

LCD TV brands and OEMs are starting to move forward with their 2011 business plans, leading them to begin placing orders with panel makers. In the short term, the reduced working days at LCD module factories in China during Q1’11 due to the Chinese New Year holidays is leading some brands to refill their inventories earlier.

Hsieh added: "The recent sell-through results in China and North America served to clear out some inventories. This could be a positive factor for panel price stabilization in the next quarter as some brands and OEMs increase their demand forecast."

The DisplaySearch Monthly TFT LCD Shipment Database includes these additional highlights:

* On a unit basis, LG Display was the leader with 27.5 percent market share, followed by Samsung with 23.5 percent, Chimei Innolux with 17.8 percent, and AUO with 15.8 percent.

* On a revenue basis, Samsung led with a 25.5 percent market share, followed by LG Display with 25.3 percent, AUO with 16.4 percent, and Chimei Innolux with 14.3 percent.

* On an area basis, LG Display led with a 27.4 percent market share, followed by Samsung with 24.5 percent, Chimei Innolux with 16.5 percent, and AUO with 15.5 percent.

* All panel makers enjoyed M/M growth, with the exception of Hydis, Sharp, Tianma, and Toshiba. Meanwhile, BOE has the highest M/M growth rate of over 70 percent. Chimei Innolux has over 30 percent M/M growth. Companies like InfoVision and HannStar also enjoyed double-digit M/M growth.

* Slate/mini-note (5-11.6”) panel shipments were 7 million in November, maintaining the high level set in October. Within the 7 million, 9.7” iPad panel shipments were 2.8 million.