Recently, many panel companies such as BOE, South Korea’s LG Display, AU Optronics, and Innolux have announced financial results for the first quarter of 2018 in succession. It can be seen that major manufacturers’ revenues and profits have fallen or even lost year-on-year. When analyzing the quarterly results, all companies mentioned that their poor performance was affected by “the decline in panel pricesâ€.
According to relevant data, China Taiwanese panel maker Innolux achieved a net profit of NT$2.94 billion (US$98.61 million) in the first quarter of 2018, a month-on-month decrease of 31.5%, and a year-on-year decrease of 75.2%; this is also its seven consecutive quarters The lowest quarter of revenue.
Panel prices continue to explore: In 2018, Q1's net profit dropped by nearly 70%
One of the big reasons why panel prices are under investigation is of course sufficient capacity. Undoubtedly, BOE’s capacity table this year is too eye-catching, ranking first in the world in terms of LCD panel shipments in the first quarter. Moreover, BOE is currently negotiating cooperation with Samsung Electronics. China’s policy subsidy has achieved economies of scale with a loss-based output method, and Korean-based partners have assisted in the development of production capacity. This will inevitably bring about enormous damage to global TV panel prices. China’s Taiwanese panel duo – AUO and Innolux. Bear the brunt.
Industry insiders predict that in the second quarter, Innolux's large-size panel shipments will have a decline rate of 4 to 6%, and the average selling price will decline by 7 to 9%. It is expected that TV shipments will reach 100,000 units per month in the second quarter.
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