Shipments of large-size TFT-LCDs over 9.1-inch fell to 163 million units in the third quarter of 2010, with 4% sequential decline, but 7% on year growth. Revenues reached US$21.3 billion, down 7% sequentially, but up 7% on year, according to DisplaySearch.
Panel makers are targeting just 3% shipment growth in the fourth quarter of 2010, as the capacity utilizations have been in a controlled range due to the slow demand in the end market and supply chain inventory adjustments.
"The TFT-LCD industry experienced an oversupply in the third quarter of 2010, and as a result, shipments declined, panel prices fell and suppliers reduced capacity utilization rates due to the lack of orders and inventory reduction. However, even as overall shipments decline, LED-backlit panel shipments are still growing, continuing the industry's irreversible trend toward LED," noted David Hsieh, VP, Greater China market, DisplaySearch.
Hsieh added, "The third-quarter performance results are partly due to over-optimism and over-stocking in the second quarter of 2010. Looking forward to the fourth quarter, panel prices, inventories and capacity utilization have all fallen to lower levels. Despite this, the TFT-LCD industry is expected to overcome these tough challenges by the end of the year."
In terms of demand by application, monitors and notebooks experienced sequential declines, but LCD TV and tablet PC applications continued to grow in the third quarter of 2010. Notebooks suffered the largest sequential decline of 14%, while monitors fell by 8% sequentially. Panel prices for both applications fell drastically from July to October, and only started to see some stabilization in November. Netbook/tablet PCs grew by 8% sequentially, thanks to soaring 9.7-inch panel shipments, which increased from three million units in the second quarter of 2010 to 5.6 million units in the third quarter.
LCD TV panel shipments grew in the third quarter of 2010, despite the oversupply situation because of spot deals for brands who are looking to holiday promotions to reduce inventories, especially on 40-inch and larger and LED-backlit models. Shipments of 40-inch and larger LCD TV panels grew from 16 million units in the second quarter of 2010 to 18.1 million units in the third quarter. Among them, LED-backlit panels grew from 5.8 million units in the second quarter to 7.8 million units in the third quarter.
In the third quarter of 2010, Samsung Electronics and LG Display nearly tied for market share leadership on a revenue basis, capturing a 26.0% and 25.9% revenue share, respectively, and sales of US$5.5 billion. AU Optronics (AUO) was third at US$3.4 billion with a 16.1% share. Chimei Innolux (CMI) followed with a 14% share (down from 15.7% in the second quarter) at US$3 billion.
Of the US$21.3 billion in large-size TFT-LCD revenues in the third quarter of 2010, LED-backlit panels accounted for 44%. This is a big jump from 37% in the second quarter. On a unit basis, 77 million LED-backlit panels shipped in the third quarter, a 6% sequential growth from the second quarter of 2010. The total market share of LED backlights increased to 47.2%, from 42.7% in the second quarter. In the third quarter of 2010, LED backlight market share was 21% in monitors, 93% in notebooks, 100% in netbook/tablet PCs, and 26% in LCD TV. LG Display was the leading LED-backlit LCD panel supplier in the third quarter of 2010.
Looking forward, panel makers are targeting shipments of 168 million units in the fourth quarter of 2010, which would amount to a 3% sequential growth. But for LED-backlit LCD panels, panel makers are aiming to grow shipments by 12%. However, expected total large-size TFT-LCD revenues will decline by 9% in the fourth quarter due to price erosion in LCD TV panels. In the meantime, LED-backlit LCD panel revenues are expected to fall by 2%, despite the strong expected growth in shipments. This is based on the fact that, in TV applications, price reductions in LED-backlit panels are more severe than for CCFL-backlit panels due to the shrinking LED premium.
| DisplaySearch: Large-size TFT-LCD panel shipments by application, 3Q10 (m units) | |||||
| Application | 3Q09 | 2Q10 | 3Q10 | Q/Q | Y/Y |
| LCD monitor | 49.6 | 50.9 | 46.6 | (8%) | (6%) |
| Notebook/Tablet PC | 41.8 | 48.9 | 42.1 | (14%) | 1% |
| Netbook | 10.7 | 12.3 | 13.3 | 8% | 24% |
| LCD TV | 46.3 | 55.0 | 57.4 | 4% | 24% |
| Public display | 0.3 | 0.4 | 0.4 | (12%) | 17% |
| Others | 3.1 | 2.7 | 3.1 | 16% | 1% |
| Total | 151.9 | 170.2 | 163.0 | (4%) | 7% |
Source: DisplaySearch, compiled by Digitimes, November 2010
| DisplaySearch: Top-3 suppliers by application, 3Q10 | ||||||
| Rank | LCD monitor | Notebook | Netbook/Tablet PC | LCD TV | Public display | Total |
| 1 | LG Display | LG Display | LG Display | LG Display | Sharp | LG Display |
| 2 | AUO | Samsung | Samsung | Samsung | Samsung | Samsung |
| 3 | CMI | AUO | HannStar | Sharp | N/A | AUO |
Source: DisplaySearch, compiled by Digitimes, November 2010