Q2 Panel TV Brand In China Purchases Quarter Decline

According to DRAMeXchange Technology (TrendForce) WitsView’s research findings for the Chinese market shows that nearly three quarters of Chinese TV brand purchases in the panel changes, the present trend of decline quarter by quarter. In the fourth quarter of last year, the overall size of the TV panel purchases reached a record high of 94 million milestone, the first quarter of the reduction in the number of days and the off-season under the double impact effect, purchases fell to 76 million, a whopping 27 % quarter rate cut. In the second quarter because of inventory issues were gradually began to ferment, the procurement scale compared to the previous quarter, again dropped 15% to 64 million, only the last quarter of the level of purchases Qi Cheng.

WitsView analysts pointed out that, apart from well-known seasonal factors and inventory problems, the results also behind the formation of two key factors. The first is the pressure of competition from international brands, including SAMSung, SONy brands actively markdowns on the price of victory has always been a certain extent, domestic brand sales pressure, in the international and domestic brand market share continued to narrow between the International direct impact on domestic brands panel stomach capacity. Second, is the product conversion problems, Chinese brands actively launch LED TV, LED panel in short supply at this stage however is the fact that the procurement models in CCFL and LED strength of weak real-time models and can not converge, the same can not lead to purchases enlarge .

All major brands of TV panels in June for the procurement situation, Skyworth to two percent of the overall share of the title, the other including Hisense, Changhong, Konka and Haier brand, procurement proportion falls between 15 to 18%, and in the past not much difference a few months.

The obvious is the procurement of the first quarter of the average share of almost 20% of the level, but in June it fell sharply to 7% of the TCL. WitsView analysts believe that in the first half of the Chinese Lunar New Year and the holiday sales are not particularly prominent place, and therefore the brand’s point of view, purchase volume during the period the larger the panel, at this stage the pressure faced by the inventory the greater will of course need to be made in the procurement of a significant reduction in quantity of the amendment.

Looking in the third quarter of the panel of Chinese TV brands demand conditions, WitsView analysts said that as TV panel prices continue to fall, with October National Day holidays in China soon, estimated the strength of stocking should be subject to recovery. However, the brand can increase the actual number of how many purchases, I’m afraid to look at the most difficult problems digesting inventory situation.

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