LCD Panel Inventory Building Up

Inventory is getting high, which means it's time for production to slow down.

LCD panels have been selling well, there's no secret about that. It seems that they haven't been selling quite as well as expected though, since major manufacturers are starting to pile up inventory.

According to a recent report by DisplaySearch, "Most brands are still facing high inventories for LED-backlit LCD TV models." That means that we're likely to see quite a bit of promotion for the LED backlit sets - companies want to move them before new models hit the shelves.

Research from iSuppli reveals similar findings, and speculates that the overabundance of LED backlit LCD televisions could result in lower prices to prevent oversupply.

"If panel suppliers can control production skillfully and rationally, 2011 can be very positive year for the LCD industry," says iSuppli's Sweta Dash. "On the other hand, excessive production in the first half may lead to an inventory buildup and oversupply in 2011."

Source: TWICE