NB panels still have price pressure this month. Most brand makers didn't meet their sales targets in June due to weak demand in Europe and North America. NB brand makers have strong sales targets to meet in Q3'08 and demand is expected to rise seasonally from July. However, the inventory levels at some NB brand makers are still higher than normal. Therefore, this month is still tough for NB panel makers, and the price is negotiable for strategic spot deals.

In July, 26"W panel prices continue falling as the supply remains loosened. The competition in panel cost-down continues; some panel makers are promoting VA type, and the cost gap between VA type and TN type is shrinking rapidly.

With Gen 8 and Gen 7.5 capacities supporting 32"W production, 32"W is in over-supply. Price pressure continues; the typical price is breaking $300 in the 1st half of July, and the price can be even lower for some strategic promotional deals. Top-tier TV brands will continue promoting low-priced models in the US market for coming quarter. The demand in Europe is slack where the inventory is piling up and became a big concern. Additionally, the recent sales in China market are reported as weaker than expected. Though the seasonal TV panel purchasing should start from early Q3 and demand is expected to increase, TV brands are seeking more price concessions from panel suppliers to somewhat ease the heavy margin pressures.

Demand for 37"W LCD TV is weaker than expected, and panel price pressure is heavy. Some brands and TV assemblers find difficulties positioning 37"W LCD TV as it'll be challenged by 40"W TV set as the price gap narrows. The price decline for 37"W panels is 3% on average in the 1st half of July, bringing the typical price to $400.

The price of 42"W panel continues to go down as the supply market is loose. Panel suppliers tend to lower the price aggressively to some strategic clients to boost the demand. Price erosion in 40"W is about 2-3% M/M in July.

To keep higher capacity utilization for Gen 7 and Gen 7.5 fabs, panel makers are much more aggressive on prices in order to boost the demand for larger screens. The price of 46"FHD continues to drop and is priced at $710 on average in the 1st half of July. Top-tier TV brands have a dominant market share in this large-sized sector; more strategically promotional fighter models will be launched to boost demand in the hot season. The price reduction in 47"FHD is aggressive, too.

PDP panel prices start to fall from Q3'08 for year-end promotions, especially for 50" HD. DisplaySearch forecasts the plasma panel shipments will reach 15 million units in 2008, and first-half shipments are matching that forecast. 32" PDP panel shipments are expected to reach over 2 million in 2008, with a certain price gap with 32" LCD TV panels. Meanwhile, plasma panel makers also started head-to-head competition between 46"FHD plasma panels and LCD TV panels.

Seasonal weakness continues, which causes panel makers to reduce mobile phone panel prices further. Mobile phone panel volumes from Taiwanese panel makers continue to decline for the China market.

OEM/ODM makers are starting to adjust their forecast downward due to inventory issues. Several panel makers who recently joined the market are offering more aggressive prices to encourage the demand. However, the demand is still weak.

The 8.9" price starts to show price pressure because new players are coming in this market.

The panel price decreased by $0.1, and we expect that prices could continue to drop until September.