AUO Chairman and President Paul Peng estimated that third quarter shipments for large-sized panels will fall 5% to 7%, and the average unit price will fall 1% to 3%. Mid-sized panels will also shrink between 1% and 3%, and the inventory pressure will be greater for large-sized panels.

Paul Peng also stated that this year, panels, computers, and monitors are the industries which are experiencing the greatest hardships. Demand in the computer industry is not high. Furthermore, Microsoft did not launch its new products until late July, which has not only influenced sales but also lengthened the period of adjustment for inventory channels.

Although the forecast for consumer products is weak, AUO is continually developing the market for panels in the automobile market. AUO Executive and General Manager of Mobile Solutions Business Group, Fwu-Chyi Hsiang stated that European and Japanese automobile companies are continuing to use AUO panels in automobiles. In the third quarter, American automobile companies will also begin shipments of these products. Consequently, this year profits and shipments of AUO’s panels for automotive use are set to increase more than 30%.

Fwu-Chyi Hsiang also stated that due to the influence of the depreciating Euro and Japanese Yen, shipments of panels for use in automobiles have increased in the European and Japanese automobile markets. In the second quarter, shipments of automobile display panels increased by 10%, and yearly shipments are set to increase 40%.

(TR/Phil Sweeney)