According to the set of micro network reports, supply chain sources revealed that recently, Huaqiang North cell phone with LCD repair screen driver chip (TDDI) began to increase prices, up to 50%.
Entering 2023, the smartphone market remains sluggish. According to Tiburon Consulting, it coincides with the low demand season, and the market demand has not yet significantly recovered, smartphone production will continue to fall in the first quarter of 2023, estimated to be only about 251 million units. And IDC’s latest report points out that the impact of economic uncertainty and high inflation, lowering the global smartphone shipments forecast this year, from the original expected annual growth of 2.8%, to show a recession, about 1.1% annual decline in shipments also fell to 1.19 billion units.
Due to weak market demand, driver chip makers’ inventory from last year will continue into the first quarter of this year. It is understood that there was a large amount of inventory of drive chip manufacturers last year, Aptar recognized inventory decline and doubtful loss in the third quarter of last year, a total of 2.497 billion NTD; Weir shares are expected to provide for inventory decline of up to 1.34 billion to 1.49 billion NTD last year.
At present, cell phone brand manufacturers pulling power is not enough, drive chip prices are still at a low level. Analysts point out that in the cell phone brand market, the average price of cell phone driver chips has been falling from $3 last year to $1.3, and has so far been maintained at about $1.3. DAMO expects that TDDI prices may still drop 0-5% in Q2, narrowing from the 5-10% drop in Q1; OLED view, pricing has also been stable due to increasing penetration and limited increase in foundry supply.
But the repair screen market drive chip recently began to increase prices. It is revealed that the repair screen driver chip last year, the offer fell to $1.2, but recently stopped falling and rose to $1.4-1.8, the highest increase of 50%.
Supply chain sources pointed out that this wave of cell phone maintenance screen drive chip price increase is not because of demand recovery, but the supply chain of self-help behavior. From the end of last year to the beginning of this year, cell phone repair screen driver chip prices have been kept low, manufacturers are in a long-term loss state. In order to improve the business situation and increase profits, manufacturers coincidentally raised the price of cell phone repair screen driver chip.
However, the cell phone repair screen driver chip market is relatively small compared to the overall market, and its price increase will not cause the brand market to rise. And because the repair screen drive chip price wave is not driven by demand, but also does not have a lasting nature. Analysts pointed out that if the cell phone market does not warm up, is expected to June – August repair screen driver chip prices will not be able to continue to rise, and may even decline.
Currently, LCD cell phone panel prices are at a low level, and the market is also subject to flexible OLED squeeze, LCD manufacturers will continue to lose money in the first quarter. Affected by this, LCD driver chip prices are also very difficult to rise. Analysts believe that the most ideal state of cell phone LCD driver chip manufacturers this year is not to earn or lose.
Post time: Mar-20-2023