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Friday, 01 July 2011 12:25

AU Optronics slashes production

Written by Nick Farell


Begun the cutbacks have
In a bid to lower product inventory, panel maker AU Optronics has cut its glass purchases by 15 per cent  and plans to reduce capacity-utilization rate to about 80 per cent in July.

According to Cens.com AU is not alone it trying to cut back on its inventories. Chimei Innolux which is the largest TFT-LCD panel maker in Taiwan, and Korean counterparts Samsung and LG , also reportedly plan to cut production to protect panel prices.

High inventory levels in TFT-LCD panel distribution channels have caused prices to drop, so many major panel suppliers are trying to cut production. AUO is expected to lower production capacity to 80 per cent in the third quarter, from about 85 per cent.

Chimei Innolux also to reduce production capacity from about 90 per cent to 80  per cent Samsung and LGD have cut production capacity in the second quarter, and are expected to further cut 5 per cent in the third quarter.

 

Nick Farell

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Comments  

 
+18 #1 hoohoo 2011-07-01 12:38
Were these companies not all convicted by the EU for price fixing? Chinei IIRC was fined more than 300 million euros. So wtf is this news - they are all cutting production - just a different way to keep prices high. :-x
 
 
+2 #2 redunion1940 2011-07-01 14:11
Welcome to the general capitalist world. This isn't price fixing unless evidence comes out that they all got togeather and said hey lets stop making monitors. To put it simply this make sense, who doesn't own a flat panel tft-lcd now, demand has to be down. So production must lower to meet demand.
 
 
+5 #3 neo222 2011-07-01 16:35
since wen did panels became perishable items!! Huge inventory..lmao..nice tactics to increase price...my dream of 24" monitor is goin down the drain!!
 
 
+3 #4 TinHat 2011-07-01 16:48
Quoting neo222:
since wen did panels became perishable items!! Huge inventory..lmao..nice tactics to increase price...my dream of 24" monitor is goin down the drain!!


You are kidding arn't you? You can get a 24" monitor from as low as £149. You wanna stop buying LCL larger and tabs for a week mate. hey hey.
 
 
+4 #5 neo222 2011-07-01 16:51
in a place wer i am..24" monitors still cost ~$220..and in places deep in asia..those get even costlier...
 
 
+2 #6 hoohoo 2011-07-01 17:02
Quoting neo222:
in a place wer i am..24" monitors still cost ~$220..and in places deep in asia..those get even costlier...


Yeah, it's strange. I'm in Canada - my friend who lives in Tokyo saw my several 24" LCD monitors and asked why I would spend so much money on monitors. It seems LCD monitors in Tokyo are pricey. Yet large screen LCD TVs in Tokyo are much cheaper than here.
 
 
+8 #7 Brusfantomet 2011-07-01 18:26
Quoting neo222:
in a place wer i am..24" monitors still cost ~$220..and in places deep in asia..those get even costlier...

well, 220 usd is according to google about £ 140.
hope they keep the IPS production up, the world does not need more TN panels
 
 
0 #8 a1927 2011-07-04 11:17
When will stop this madness with 16:9 panels? All shops are full of these 16:9 monitors and it is really difficult to find decent product of traditional ratio.
16:9 is only good for movie watching; any other activity I am aware of benefits from additional pixels.
I HATE 16:9.
Somehow I don't feel for LCD manufacturers, they can go to the hell with overstock of their current crap.
I concur with Brusfantomet - consumers need more IPS panels and of proper screen ratio. For _this_ I am ready to pay the premium.
 

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