Weaker-Than-Expected Demand Forces LCD TV Makers To Lower 2011 Output

Jonathan Sutton

A recent study by DisplaySearch has revealed that major LCD TV manufacturers have been forced to put the brakes on this year’s LCD television production as a result of demand being lower than expected. According to the California-based market research firm, these downward revisions of production plans have come at a rapid pace, with TV brands realising that sales are going to be much slower than they had anticipated.

LCD TV output lower

However, despite these downward revisions at the moment, manufacturers are looking forward to better prospects towards the end of the year, with a pick up in sales expected in line with the holiday season. With this in mind, many LCD TV makers will be increasing their production plans for the third quarter of this year in order to meet the increased year-end demand that they are hoping for.

According to figures from the latest MarketWise: LCD Industry Dynamics report published by DisplaySearch, the production plans for the top sixteen manufacturers of LCD TVs will increase from a collective 14.4 million in July to 16.9 million for August. The research company expects a further surge in manufacturing numbers in September, when collective output is predicted to hit 19.4 million units. It is claimed that OEM/ ODM makers are also planning to boost production during that period, going from 3.9 million in July to 4.7 million in August, and then increasing to 5.4 million units for September.

Weaker-than-expected demand was seen recently, especially in North America and Western Europe, causing top HDTV brands to miss their production targets by 10 percent in May. DisplaySearch said that many LCD television manufacturers including those from China have been struggling with sluggish sales over recent months, and therefore have opted to err on the side of caution as far as production is concerned to mitigate the risk of surplus inventory.