China Market: TV Panel Inventory to Return to Normal Level in September

LCD TV panel inventory in the China channel has increased to 12 days and is expected to return to a normal level of 21 days in September, according to market sources.

Sales momentum during the October National Day shopping season in China will be a key indicator for panel outlook in the fourth quarter of 2009 and in the first half of 2010, the sources noted.

If vendors raise TV prices for the shopping season to defend their profits from rising panel prices, TV sales will be affected and result in inventory issues in the channel, the sources commented. On the other hand, if vendors refrain from hiking prices in their fight for market share, inventory in the channel will be digested and provide the panel industry with a better outlook, the sources explained.

Thanks to a series of promotion programs from the China government, LCD TV sales in China''s retail market increased by 55% on year to 4.12 million units in the first quarter of 2009, while vendors'' shipments to the retail channel increased by 46% on year to 4.57 million units.