Research firm WitsView claims prices of LCD monitor panels may drop below their fully-loaded costs in August and may even come close to the cash cost levels due to excess inventory. However, the research firm believes the excess inventory will be cleared quickly as panel makers are cutting their output.
The research firm said IT panels will drop 7-9% and TV panels will slip 3-5% in the first half of August. The persistent downward price trend has stemmed from an inventory glut and weak demand from clients that are withholding their orders in anticipation of further price drops.
But WitsView holds a cautiously optimistic outlook for the panel market in the second half of 2008, reasoning that the steep panel price drops should help stimulate demand.
Brand vendors and retailers will offer consumers display products with attractive prices during the back to school period in September, China's National Day holidays in October, and the year-end Christmas sales promotions, it predicts.