Taiwan-based Chimei Innolux (CMI) and AU Optronics (AUO) are likely to face excessive supply of their LCD TV panel products in the fourth quarter of 2012 due to expected releases of various consumer electronics products, according to industry sources.
While demand for LCD TV panels is remaining steady in China, which is also keeping prices up, an overestimation of TV sales in the fourth quarter in China may lead to excess inventory and later to losses for CMI and AUO, similar to what the companies faced throughout 2011, as new tablet and notebook products are expected to be released, said the sources.
The sources said Windows 8 in particular will be a big driver for panel makers possibly oversupplying LCD TV panels and that they need to adjust their inventories to avoid possible ramifications.
However, market observers have recently been stating that they hold conservative views for Windows 8 products, which are also expected to have limited growth in China.
Article translated by Alex Wolfgram
