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“As panel production capacity for 2019 builds up, panel manufacturers are looking to LCD monitor products to help use up the ever growing panel capacity. Among these panels, 23.8-inch sizes have seen a significant increase in supply capacity, but end demand is finding a hard time catching up with that capacity, causing prices for 23.8-inch panels to see a continual descent. As new production capacities continue to appear in 3Q, we forecast that prices for panels of this size may still fall by US$0.3-0.5 MoM under downward pressure,” says TrendForce Senior Research Manager Anita Wang.
27 inches, on the other hand, form the main size of choice for many panel manufacturers and brands, with many high-end devices using panels of this size. Therefore, all products using panels of this size give panel manufacturers a lot of leeway to cut profits. 27-inch IPS panels are forecast to drop by US$0.5-1 MoM in 3Q.
In contrast, prices for small sized TN panels 21.5 inches and below have already neared cash costs, and panel manufacturers aren't that willing to lower prices any further. Furthermore, 3Q signals the beginning of a peak season for commercial markets in China, bringing 21.5-inch TN panel demand up and presenting the best chance of seeing an end to falling prices.
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