Prices for computer LCD panels on the rise
Staff -- Purchasing, 6/17/2004 2:00:00 AM
Prices for liquid crystal display panels for desktop and notebook computers should stabilize in the third quarter after more capacity comes online.
LCD tags have been rising for the last 12 months as manufacturers have devoted capacity to larger panels for televisions. The good news is that manufacturers are expanding capacity in the second and third quarter of this year which should increase supply and stabilize prices.
Price increases have augmented sharply for 15-inch panels used in desktops, according to Sweta Dash, an analyst for iSuppli. Prices have increased $4-$5 per month for the past several months. In April, 2003 the average price for a 15-inch panel was $180-$185. In April of 2004 the price had increased to $235-$245.
Prices for 14-inch panels for notebooks have increased by about 26% over the past three months and have risen sharply since last year. In the first quarter of 2003, the average price for a 14-inch panel was about $170-$175. By April of this year the price increased to $225.
Tags for 15-inch panels for notebooks also increased over the past year but have declined slightly in recent months, which may signal some weakening in demand for the panels.
While LCD panel tags for computers have increased, tags are falling for LCD-TV panels. The price of a 29- to 32-inch LCD-TV panel dropped from just under $1,200 in the second quarter of 2003 to $1,050 in April of this year.
Dash says production of LCD panels for computers will increase about 10% in the second quarter and another 16% in the third quarter. Barring any shortages of glass, color filters or driver ICs, there should be relief from rising prices in the third quarter.
Now Playing: 
