IHS Forecasts Profit Margin Declines for 32in LCD Panels

Reading time ( words)

Commodity LCD displays, led by 32-inch high definition (HD) displays, have in the past been a key industry revenue generator, but that situation is changing, according to IHS Inc.,the leading global source of critical information and insight. Industry profits for 32-inch panels increased by 24 percent, year over year, in the first quarter (Q1) of 2015, but they are expected to decrease by 22 percent in Q1 2016. 

“Most LCD TV panel prices began to fall after the first quarter of this year, and prices will reach their lowest level in the second quarter of 2016,” said Yoshio Tamura, senior director of research and analysis for IHS Technology. “Since equipment depreciation cost is factored into 8th-generation fabs, the total LCD profit margin is expected to turn negative next year.” 

According to the IHS Large Area Display Cost Model Report, LCD panel makers are increasing their capacity in China, with 8th-generation fabs that mainly produce displays of 32 inches, 48 inches, 49 inches and 55 inches. As profit margins fall for 32-inch LCDs, manufacturers are expected to shift their 32-inch LCD production to larger sizes, thus reducing prices and increasing demand for displays larger than 48 inches.

About IHS

IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.



Suggested Items

Ocean of Things Aims to Expand Maritime Awareness across Open Seas

12/12/2017 | DARPA
The internet of things connects an ever-growing number of smart devices for up-to-the-minute monitoring and tracking of many common events. Head out to most parts of the open ocean, however, and no such capability exists for real-time monitoring of maritime activity.

Today’s MilAero Options: Outsourcing—‘Everybody’s Doing it’ Not so True Today

06/27/2016 | Marc Carter
There was a time, not so many decades ago, when that most commonly-stated mantra (“lower labor costs”) behind offshoring printed circuit fab (and some assembly) operations, still had some case-by-case validity.

How a NASA Team Turned a Smartphone into a Satellite Business

02/19/2016 | NASA
Satellites aren’t small or cheap. The Solar Dynamics Observatory launched by NASA in 2010 weighs about 6,800 pounds and cost $850 million to build and put into orbit. Even the satellites built under NASA’s Discovery Program, aimed at encouraging development of low-cost spacecraft, still have price tags beyond the reach of smaller companies or research organizations.

Copyright © 2021 I-Connect007. All rights reserved.