iSuppli: The current TV LCD panel has exceeded 2009

The graph shows iSuppli's analysis of the oversupply situation in the LCD TV market from the first quarter of 2009 to the second quarter of 2010.

According to iSuppli Corp., shipments of large-size LCD panels significantly exceeded terminal sales of TVs, monitors, and notebooks, resulting in a significant increase in finished product inventories such as LCD panels and LCD TVs.

While people are worried about the economic slowdown and may be caught in a double-dip recession, inventory growth is disturbing the entire monitor supply chain. Panel suppliers, contract manufacturers, brand manufacturers, and retailers are worried. LCD panel buyers cut orders significantly in July, exacerbating the oversupply situation. Indeed, the large-size LCD panel market has been in a state of oversupply for most of the second quarter of 2010, but the reduction in orders in July further aggravated the problem of oversupply and inventories have risen to higher levels.

An example of supply chain inventory growth can be found in the LCD TV market. In the first quarter of 2010, panel shipments in this market were 46.8 million units, while LCD TV shipments were only equivalent to 37.5 million units – a panel surplus of 24.5%. In the second quarter, shipments of large-size LCD TV panels increased to 52 million, but actual shipments of TVs were only 38.7 million units, with a panel surplus of 36.4%. Excess levels were higher than in 2009, making the oversupply situation in the panel market even more challenging. Seriously, especially the outlook for the second half of 2010 is not clear.


As buyers reduced orders in July and August, the supply surplus was maintained during the first two months of the third quarter.