LG Display wins No. 1 TV panel in 3Q...Opens a gap between Samsung

LG Display has remained No. 1 in the global TV panel market in the third quarter. And it opens a gap of sales between Samsung Display at the 2nd place. Despite the oversupply of liquid crystal display (LCD) panels, BOE has solely grown in sales, coverage area, and number of shipments.

According to market researcher IHS Markets, LG Display is the top seller in terms of sales, coverage area, and number of shipments. in the TV panel market combined with LCD and organic light emitting diode (OLED) in the third quarter. However, sales have declined for YoY. Only the coverage area and number of shipments have increased. The same case goes for Innolux and CEC Panda. BOE was the only place where sales, coverage area, and number of shipments have all grown.

The overall TV panel market trend did not differ so much. Shipments have increased compared to the same period last year, but sales have declined. It is comforting that sales were the highest this year. This was interpreted as showing that LCD panel prices rebounded from the last half of the year.

Sharp was the company with the biggest drop in sales. AUO and Samsung Display followed after. Innolux and China Star (CSOT) also saw double-digit declines. LG Display, which mass-produces OLED panels for TVs, has relatively less to drop in its sales than Samsung Display, which relies exclusively on LCD panels. The sales gap between the two companies stood at $799million (about 810 billion KRW) last year and is $895million (about 97 billion KRW) bigger this year.

Oversupply of LCD panels is the crucial cause of the decline in TV panel companies' sales. Industry experts analyzed that the shipment area and shipments did not increase because of high demand, but they were pushed through low-price policies. LCD panel prices also turned to be weak in 4Q, which shows the rising and falling curves have become steep, unlike the past.

Outlook for the next year is not so bright. IHS Markit expects 55-inch UHD panel prices to fall from $154 in October to $146 by March next year due to aggressive inventory adjustments by set makers and seasonal off-peak season. Depending on the supply and demand situation, there is room for a rebound from the first half of the year. An industry observer said, "Supply overcapacity will continue as CSOT plans to start LCD factory in full swing starting next year after BOE," and “however, LCD panel prices may stabilize if some companies enter into fab adjustment.”