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Today, the panel of devices need very much, the rise of mobile phones and tablet terms, has become a new growth point of the panel business. This is due to the traditional TV, notebook panel market already is the Red one, price competition is very intense, and the Mainland, Taiwan and Japan, many panel makers are focused mostly on the mobile space. But according to recent news, the major panel factory living conditions are not good, especially competition in the mobile field was extremely intense, such as the production focused on Japanese mobile screen display (Japan Display), single quarter after-tax burned 16.834 billion yen, showing the situation tragic.
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So what is the reason to make a good profit margin would have been the breeding of the mobile panel market price war signs? I believe that smart friends certainly guessed fundamental reason is that the supply is already moving panel oversupply. But we know that growth in the mobile market is very fast, do not say the sudden rise of the tablet market, is the only iPhone6 ​​launch, the number of panels can be driven by demand? Global also has continued replacement demand, then such a huge market, why look crowded? This is the main question we have to analyze today.
Currently there is a voice that fierce competition in the mobile panel, if only temporary rise in the third quarter of 2014 special, which leads to the loss of panel factory, then the truth is that so? In subsequent quarters, the panel will move to revitalize it? I believe that the third quarter of 2014 is indeed special, but after moving panel market competition can not be optimistic, then we discussed in detail.
Desire is not high and the system is not to force 4K
We first look at the quarterly reasons. With the boom in the popularity of smart devices after the past, and now smart device replacement demand, has not "from scratch", but to "from there to change", so that the vast majority of users' needs and buying requirements have changed, in the past people eager to replace old products in their hands, for the less demanding new smart devices, now this demand is declining, although the low-end mobile phones and tablet selling well, but this type of product lower profit margins, so for panel plant less able than before pulling strong.
Plus homogenization smart devices also tend to serious, especially the evolution of Android devices, the performance continues to the upper body, camera, fluency, screen size and resolution is not the dominant factor in the user switches. Two replacement market is expected to promote the strength, but also did not play a role in the application. One is the emergence of 4G, allowing manufacturers to think big screen, high-speed network devices would explode, but in fact the market for the reaction 4G devices, not very warm, leading to large shipments of this kind of equipment is much lower than expected.
In addition to 4G factors promote new system is also not been demonstrated. Andrews change the system, to 4.0 after basically "patch" type of modification, plus a variety of Android manufacturers for depth customization system allows the user wishes to buy a new machine feel the new system greatly reduced. The windows system is not play its due role, both in the flat areas, or field notebook, equipped with a device touch effect windows systems are weak, and there is no good sales.
Taking these two reasons, we find that the performance of the rapid development of smart devices, beyond the needs of users, while stimulating shake 4G high-end products and systems, is not very attractive, thus resulting in high demand for credit in the lower panel.
Products are highly competitive cottage decline
Insufficient to stimulate high-end products, resulting in the overall price of mobile devices continues to decline, thus squeezing the living space of a serious low-end products. Originally this space is dominated cottage products, brand such products is unlikely, but wins in price, to meet the needs of the user entry, but with the major brand products prices continue to dive, making the cottage products competitiveness continued to fall, the cottage smart devices have ushered in his own doom.
Throughout today's smart devices market, we can find the price of smart phones continue to dive, whether Andrews camp or Apple products, is the same situation. For example, Apple's tablet past basic products are maintained at more than 2000 yuan, now with the constant introduction of Apple's new iPad, plus the small size of the production to join, its products rich enough, new and old products constitute a new price system. Lowest Apple iPad product has fallen to 1888 yuan.
Plus millet brands such intervention, leading to the living space of the cottage manufacturers extreme compression. You can say that this case is whether in the field of mobile phones in the flat areas, are being staged. Such replacement weakness in high-end products, while also facing the problem of low-end products to survive, the overall decline in the number of shipments.
In addition, although the brand's entry-level model is also more up, but after all in the cottage during the alternate exit and brands dive, the overall number has not been maintained at a stable range, the panel or the entire market demand is reduced.
Consumers try Qi looked forward iPhone6
Another reason is that in the quarter before iPhone6 ​​due to release before publishing a lot of people are looking forward to Apple's new product, in the state hold out. Consumers are not so, the major manufacturers are also concerned about the new iPhone's dynamic, after all iPhone is still the leading global mobile phone development important benchmark. Therefore, in this quarter, the number of new machines is reduced, which also reduces the demand for the panel, so to say this quarter also has some special reason.
But from a broader perspective we look at this issue, we first look at Japan. JDI mentioned earlier, the screen in the mobile market has been determined, JDI will amplify its Mobara plant's production capacity target for the end of the year 50% higher than the current monthly capacity increase to the next year, will further increase to the existing two-fold . Sharp also followed another manufacturer JDI's footsteps, decided to expand their products, which adjusted the second panel plant located in Kameyama, half of which is used to produce small and medium-size panels, the future of the proportion will increase to more than 80%.
In the meantime, the Chinese market for mobile panel layout is the situation protrusions. Since only 5.5 generation line and six-generation line to produce high-resolution mobile panel, now in Xiamen Tianma 5.5-generation plant has been put into operation, AUO also announced last year that it would invest to set up a six-generation plant in Kunshan, Jiangsu, Inner Mongolia Erdos BOE the 5.5-generation plant production this year, while in Chengdu, Sichuan is also planning a new 6-generation line. Huaxing power in Wuhan, Hubei 6 Line, as well as six-generation line of Foxconn in Chengdu will begin preparing. From this information we can see, in the next two years, the number of mobile market, the panel will be greatly increased.
Substantial development of the mobile market, had led to a big change and prosperity panel market, but starting from this quarter, panel makers began to face the problem of losses, some analysts think that this is to reduce quarterly, there are certain truth. We also analyzed several reasons for this quarter, less than a new stimulus elements, cottage brand of recession and wait for the iPhone is indeed affected the entire quarter panel of the supply chain, resulting in a loss of panel makers. But in the long run, the panel industry oversupply, after two years, will reach a peak, so the price of the panel will continue to decline, I believe panel makers bitterness is far from over.