Panel prices are expected to stabilize as early as fourth-quarter 2011, with the incoming Ultrabook and Window 8 that works on PCs and handheld devices, according to sources in panel industry.
Overexpansion of next-generation production lines has led to low utilization rates and sliding panel prices, the sources commented, especially amid a weak economy and declining demand for large-size TVs.
It is also unlikely for small- to medium-size panel prices to rise even though demand for touch-enabled small- to medium-size devices remains strong.
According to DisplaySearch, 13.3-17.3-inch notebook panels reported a 2-5% decline in prices as of early September 2011, the only exception being the 14-inch LED-backlit segment whose price had remained stable since May.
The sources said that the release of Ultrabook might throw a lifeline to the panel industry, as notebook and panel makers have been working closely together Notebook maker Compal Electronics set up a joint venture with LG Display (LGD) in Kunshan, China, in August 2010, for the production, assembly and sales of notebook components. Acer is one of Compal's major clients.
Compal president and CEO Ray Chen recently commented that Ultrabook's design and price will be key to attracting consumers back to notebooks.
Notebook players of Asustek, Acer and Toshiba have all planned Ultrabook releases. The products are said to be sold at retail prices of under US$1,000 per unit.
Notebooks on display
Photo: Digitimes archive
Article translated by Joy Wan
