The demand was sluggish; however, thanks to the low cost, the price declines of Open cell and module have reduced significantly and remained stabilized, respectively. It's expected that the average price of themodules would drop by USD 0.4 in September and continue to drop by another USD 0.4 in October. For Open cell, the average price would drop by USD 0.2 in September and October, respectively.

The Chinese brand began to launch the National Day and the Double Eleven stockingin the fourth quarter, and the demand has recovered; while the overseas brand stocking is nearing completion.

In terms of large size, supply and demand surplus continues, but due to the expected adjustment of supply side, coupled with cost pressure, it is expected that the 65" decline is expected to narrow to 2~3 dollars in September to October.

In terms of large size, the oversupply situation continues, but supported by cost pressure, the price decline of 65" is expected to narrow to 4 dollars in September.

21.5". The demand of China B2B market has improved gradually, and panel manufacturers were active in shipment; however, the demand from overseas brands still stayed sluggish. It’s precited that the average module price would drop by USD 0.4 in August and another USD 0.4 in September. For Open cell, the average price is expected to drop by USD 0.6 in August and USD 0.5 in September.

32", in August, it will maintain a decline of 2 US dollars, and the price decline in September may narrow.

The Global Smartphone Panel Market Remained Sluggish in 1H 2019, with a 5.2% YoY Shipment Decline

Under a background of intensified inter-regional trade frictions in the world and political instability, the global economic recovery weakens further. According to the latest prediction of IMF on the global economic growth, after times of reductions of global economic growth expectation in 2019, it's expected that the growth would only be increased by 3.2%, which shows a significant slowing.

Early in 2012, based on measurement and calculation, Sigmaintell proposed a theory of “if the average panel size increases one inch per year, the sales volume shall be equal to the production capacity of an 8.5G line on the premise of the product number remain unchanged”. This rule of “large-size strategy can absorb production capacity and maintain the industry’s virtuous development” continues to this day. According to Sigmaintell’s data, in those years when the average panel size was on a significant increasing, the supply and demand ratio slid, the panel prices and panel manufacturers’ profit margin increased. As Sigmaintell’s prediction, TV panel’s average size would have the possibility to increase 1.4 inches in 2019, globally.

Generally, the third quarter is considered as the peak season of a year. However, considering suppliers’ inventory pressure, Sigmaintell predicts that, in Q3 2019, the prices of Notebook panels would drop slightly or be stable. In July, the average price has reduced for no more than USD 0.1, and it’s expected to decrease for still less than USD 0.1.

Both operation and profiting of makers are facing severe challenges. The global TV panel industry is facing unprecedented difficulties.

12.2% YoY Growth of TV Panel Capacity

In terms of large size, demand growth of end products continued to be lower than supply growth. From June to July, the price of 65" fell sharply. It is expected that the decline in August will be narrowed to less than $5.

32", the price drop in June is large, and it is expected to fall slightly by 1 dollar in July.

The market demand for Notebook panel had recovered at the end of the second quarter, the shortage of Intel CPU was eased. According to Sigmaintell’s prediction, the average Notebook panel price is likely to decrease by 0.1 USD in June and to be relative stable until July.

The escalation of trade friction has made the demand for export continued unclear, and the 6.18 off-season is less than expected, and brand manufacturers are facing the pressure of destocking. The above two factors have aggravated the pessimistic expectation of the LCD TV panel market.

China Shall Be One of The Most Potential Markets Thanks to The Both Demands for Device Popularization and Upgrading.Europe as the second largest one, its medical devices occupies about 30% of the global market, where Germany and France are the two main producers.

The overall market for mobile phones continued to decline. According to Sigmaintell's data, the shipments of mobile phone panels in the whole year of 2019 fell by about 4.5 percentage points Y-o-Y. In the overall economic downturn, the price of mobile phone panels lacks growth momentum and prices continue to decline.

Monitor panel:

The main brand inventory is still higher than average in March, and the demand of display panel is still weak because of the labor lack after the Chinese Spring Festival. Panel manufactures began to adjust the allocation of supply and production capacity. Some of the panel manufactures decreased the capacity allocation of monitor and increased the capacity allocation of TV in the 6th generation to the 8.5th generation. In general, except the productions of 23.6'', the decreasing amplitude of productions of 23.8'' and below has narrowed, while the decreasing amplitude of jumbo size productions is still high. Sigmaintell predicts that with the beginning of preparation for Chinese 6•18 shopping festival, the decreasing amplitude of small and medium size will narrow, the price of Opencell will gradually stop falling, but the productionswith jumbo size and high-resolution will continuously decrease.

The analysis of main size is as follows:

1. 21.5'', the demand of B2B market is weak, so the price will continue to fall. We predict that the average price of module in March will decrease $0.5, and the decreasing amplitude in April will narrow to $0.2. In Opencell, due to the supply adjustment of some panel manufactures and the high drop range in earlier days, it is predicted that the price will stop falling in March, and remain flat in April.

2. 23.8'', while the general demand of medium size productions gathers to productions of 23.8'', the shipment of latter ones in 2019 is predicted to be over those of 21.5''. At the same time, the average price of module will decrease $0.5 in March, and $0.4 in April; the average price of OC will decrease a little, about $0.2, and stop falling in April.

3. 27'', the market is still oversupplied, and panel manufacturers will gradually transfer their focus to high-resolution productions. It is predicted that the average price of IPS FHD module will decrease about $0.7 in March and maintain the same amplitude in April.

Notebook panel:

The market demand in the first quarter continues to be low while the inventory of those brand factories is still high. The shortage of Intel CPU has a great influence towards the stock of brand factories. Those brands reduce their demand, which means the panel manufactures should adjust the capacity allocation to reply it. Sigmaintell predicts that the average price of Notebook panel will decrease $0.3 to $0.4 in March, and $0.2 to $0.3 in April.

Ultra-size market accelerates its development since 2018, according to Report on Global TV Manufacturer Shipment and Supply Chain given by Sigmaintell, the global shipment of 70” and over TV in 2018 is 3.41 million sets with a year-on-year growth of 58.3%. As for ultra-size products, in spite of 86” in IWB market, 70”, 75”,82”and 85” all stand up to others as an equal.