AUO stated that PC clients currently present inventory problems of distributors. Consequently, PC panel are expected to slow down slightly during the second quarter. In terms of Tablet panel, shipments were down 5% in the first quarter, and they are expected to continue to slide during the second quarter.

As for phone panel, first quarter shipments increased by 20%; however, due to increasing inventory reserves, growth will slow down during the second quarter. However in the second half of the year, the outlook for shipments is very optimistic.

The television panel market outlook for the second quarter is the most optimistic. AUO pointed out that television brands have a fierce demand for panels, especially large-sized high-end panels. Demand will continue to shrink for panels which are less than 32 inches in size, while it shifts towards high-end panels that are between 40 and 50 inches in size. This will especially be the case in the China market, where television measurements have already increased by over an inch during the first quarter.

As for the intensely competitive television market, numerous brands are shifting models and launching high-end products in order to maintain profits. At present, 4K TVs have become mainstream in the market and are mostly between 50 and 60 inches in size. International brands have already begun to launch curved television sets, and last year’s total shipments exceeded one million. Meanwhile, this year’s shipments have already surpassed 400,000 units to date.

In order to satisfy television clients’ demands for high-end panels, AUO stated that they will continue to launch high-end differentiation products, including more 4K panels. This year 30% of the total shipments of panels that were 50 inches and above were 4K panels, and during the second half of the year, AUO will launch 85 inch 4K TV panel. Second, they will develop 4K curved TV panels; third, will keep developing ALCD technology, a 65-inch ALCD panel will be launched in the fourth quarter of this year with ALCD quantum dot technology.

(TR/Phil Sweeney)