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TITLE: LCD monitor panel prices may drop to cash costs levels in August, WitsView says
LCD monitor panel prices may drop below their fully-loaded costs in August, and may even come close to the cash cost levels, which would mark the lowest acceptable average selling prices (ASPs) for makers, according to WitsView.
The research firm said IT panels will drop 7-9% and TV panels will slip 3-5% in the first half of August. The persistent downward price trend has stemmed from an inventory glut and weak demand from clients that are withholding their orders in anticipation of further price drops.
But WitsView holds a cautiously optimistic outlook for the panel market in the second half of 2008, reasoning that the steep panel price drops should help stimulate demand.
Brand vendors and retailers will offer consumers display products with attractive prices during the back to school period in September, China's National Day holidays in October, and the year-end Christmas sales promotions, it predicts.
With panel makers cutting their output, the panel market should be able to clear the excess inventory quickly, WitsView believes.
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