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By AUO LCD supplier | 13 August 2020 | 0 Comments

Average price of AUO will increase by 4% to 6% in the 3rd quarter

Recently, lcd panel prices have risen sharply, and the visibility of orders in the third quarter is much higher. Ko Furen, general manager of AUO, further pointed out on the 11th that most applications are in a good demand state, the boom is very hot, and the visibility of panel orders can be seen from October to November. In addition, due to the lengthening demand for home work and education, it is expected that IT will be hot until 2021. At the legal conference at the end of July, AUO released the message that visibility was much higher in the third quarter. Peng Shuanglang, chairman of AUO, said that the achievement rate of TV brand BP was low in the first half of the year, and since the end of the second quarter, TV brand operators have been actively stocking, hoping that the second half of the year will be able to level up the poor sales in the first half of the year. 

The epidemic has led to the rise of the housing economy and led to a wave of IT fever. Due to the longer hours of working from home, coupled with the demand for education and digital learning, it is estimated that the IT boom is likely to continue into 2021. 

As for automotive panels, demand in the second half of the year is expected to be better than that in the first half of the year, but car sales in 2020 are expected to show a double-digit decline compared with 2019. In terms of IT products, due to the rise of the home economy, the demand is buoyant, whether it is business opportunities such as work from home, study, sports, entertainment and so on, which will take longer to digest, so the demand is still hot and will continue into the third quarter. 

AUO believes that panel visibility in the third quarter is much higher than that in the second quarter, and the trough in 2020 should fall in the first quarter, which will improve quarter by quarter. AUO estimates that shipments of large-size products will increase by 40.9% in the third quarter, the average unit price will increase by 40.6%, shipments of small and medium-sized products will decrease by 10.3%, and the capacity utilization rate of AUO will be about 90% in the second quarter. It is estimated that the capacity utilization rate in the third quarter will be more than 90%, which is better than that in the second quarter. AUO is optimistic about the outlook for the third quarter, and Ke Furen further released his expectations for the fourth quarter on the 11th. Ke Furen pointed out that because most applications are in good demand, so that the panel boom is quite hot, the order taking condition is also very good. In the second quarter, the demand for TV and on-board panels is weak, but the current demand for TV has risen. As for on-board panels, due to the low inventory at the front end, coupled with the hot sales of new and used cars in the United States, the recent demand for on-board panels has been warmed up from the trough. 

In addition, although the pneumonia epidemic has not completely disappeared, after the new economic activity, the demand for IT panels also continues, as for mobile phones, because 5G plus new phones are released, it is also in a good state of demand. Overall, most panel applications are in good demand. Ke Furen said that the visibility of orders in the fourth quarter is good, including IT and TV panels, the estimated visibility has been seen from October to November, as for the follow-up will take time to observe. 

In addition, the epidemic has led to the rise of the housing economy and led to a wave of IT fever. Ke Furen said that due to the longer hours of working from home, coupled with the demand for education and digital learning, it is estimated that the IT boom is likely to continue into 2021. In fact, the recent panel in addition to keen demand, Korean factory also plans to gradually withdraw from the LCD market, the industry pointed out that due to the current economic heat is strong, so Korean factory exit speed is slower, but it is estimated that before the end of 2020 will be withdrawn as scheduled, in this case, AUO is optimistic that the supply and demand of panel in 2021 is expected to continue the second half of 2020. As for the price, this wave of TV panel price increases sharply, will it affect the follow-up pulling power? Ke Furen said that although the price rise of this wave of TV panels is fast, the online inventory has not been completely finished, and the price of inventory is still low, because the price increase of the panel has not been fully reflected in the costs of TV manufacturers, so at present, brand operators still have time to adjust and react, waiting for the new price to fully react, depending on the situation of sell through, and then to study and determine the follow-up price trend.

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