Circuits Assembly Online Magazine - Report: LCD TV Production to Hit Record High at 19.9M Units in Nov.

SANTA CLARA, CA – As global LCD TV brands ramp up production for the fourth quarter, LCD TV production is nearing a record high, with 19.8 million units in October, and is expected to maintain that level in November, says NPD DisplaySearch.

November is estimated to be the highest record, with 19.9 million units built by the surveyed brands globally, says the research firm.

TV demand outlook is turning positive for unit volume in the near term, but the focus is on inexpensive and simple-feature sets. TV brands, including leading global vendors, are planning to carry new TV sizes and low-specification LCD TVs to create business opportunities and drive traffic in 2012.

Despite strong sell-through results in North America and China, LCD TV brands are cautiously controlling their inventories. For December through February, LCD TV brands are planning to reduce production to prevent overstocking for the slow season in the first quarter of 2012. Global LCD TV production plans of surveyed LCD TV brands will fall to 13.4 million in January. LCD TV panel suppliers will need to continuously control their capacity utilization in the coming months, even as panel prices stabilize, says NPD DisplaySearch.

Shortages of hard disk drives caused by the flooding in Thailand are expected to last until the first quarter of next year, impacting production of notebook PCs and LCD monitors. In particular, NPD DisplaySearch foresees mobile PC brands cutting low-margin mobile PC production (netbook PCs or 15.6" mainstream models). Beginning in the second quarter of 2012, mobile PC production volumes could increase substantially as a result of channel refilling and new 2012 model launches, says the firm.

Monitor brands that have high attach rates to desktop PCs or have higher presence in the China market are being impacted strongly by the HDD shortage and the slowing demand outlook, while standalone monitor brands are less affected. However, in the China do-it-yourself market, demand is weakening due to increases in HDD prices.