Profit margins for 32-inch LCD displays tipped to drop

Yoshio Tamura

Industry profits for 32-inch LCD panels are will decrease by 22% in the first quarter of 2016, after increasing by 24% year-on-year in Q1 2015, according to IHS.

The research firm said that the steep decline in profit margins for 32-Inch LCD panels – a key display revenue generator – will likely mean manufacturers shift their 32-inch LCD production to larger sizes, thus reducing prices and increasing demand for displays larger than 48 inches.

“Most LCD TV panel prices began to fall after the first quarter of this year, and prices will reach their lowest level in the second quarter of 2016. Since equipment depreciation cost is factored into 8th-generation fabs, the total LCD profit margin is expected to turn negative next year,” said Yoshio Tamura, senior director of research and analysis for IHS Technology.