Report: LCD Prices Going Up

Posted 04/10/2009 at 1:00pm | by Paul Lilly

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If you spot a good deal on an LCD monitor, you may consider pouncing. Putting off that purchase could be rolling the dice at higher prices, according to data by iSuppli. The market research company notes that an increase in demand from China, driven by the impact of China's rural consumer stimulus program, has led to rising prices for LCD monitor panels. Also to blame are an increase of orders from brands and retailers, iSuppli says.

"These brand and retail orders mostly stem from demand for inventory replenishment because channels have kept their stockpiles at lower-than-normal levels since the end of 2008," iSupply noted. "With many panel prices for monitors having been drastically slashed to less than cash-cost levels, panel buyers in February started purchasing in droves in order to build a supply of cheap panels."

Increases thus far haven't been anything to warrant hitting the panic button. According to iSuppli, average pricing for most LCDs and small-sized TV panels increased anywhere from $2 to $3 in March compared to February. And while prices are expected to rise some more in the short-term, iSuppli warns that it's too early to say that a recovery is taking place in the LCD industry, as the influx of orders are not expected to be sustained.