Since Q2’12, the LCD TV panel market has witnessed a shift in screen sizes, with new models focused on 28”, 29”, 39”, 43”, 48”, 50”, 58”, and 60” displays. The rise of the new sizes has become the hottest topic in the LCD TV market. According to the Quarterly Large-Area TFT Panel Shipment Report, these new LCD TV panel sizes accounted for 12% of total LCD TV panels shipped in Q3’12, up from 5% in Q1’12 and 8% in Q2’12. We forecast that the share of these new sizes will stabilize in Q4’12 before passing 15% in 1H’13, based on panel makers’ shipment plans. We expect the new sizes to change the LCD TV panel supply in 2013.

Changes in the product mix of the LCD TV panel makers will be driven by some of the panel makers are moving to produce the most efficient sizes, regardless of the market demand. After a period of losses, panel makers will prioritize profit margins to survive. So, while the end market might prefer 32” which is comparatively cheaper, panel makers may have to cut 32” panel allocation in order to produce 39”, which has a higher panel price and in better production efficiency.
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