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ENGLEWOOD, CO – Industry profits for 32" panels increased 24% year-over-year in the first quarter of 2015, but they are expected to decrease 22% in the first quarter of 2016, says IHS.

“Most LCD TV panel prices began to fall after the first quarter of this year, and prices will reach their lowest level in the second quarter of 2016,” said Yoshio Tamura, senior director of research and analysis for IHS Technology. “Since equipment depreciation cost is factored into 8th-generation fabs, the total LCD profit margin is expected to turn negative next year.”

LCD panel makers are increasing their capacity in China, with 8th-generation fabs that mainly produce displays of 32", 48", 49" and 55".

As profit margins fall for 32" LCDs, manufacturers are expected to shift their 32" LCD production to larger sizes, thus reducing prices and increasing demand for displays larger than 48" inches.

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