Display revenue in 2022 is expected to drop 15% year-on-year to US$133.18 billion, according to analyst firm Omdia.
The drip follows year-on-year increases in 2021 and 2020, which were 26% and 14%, respectively, due to increased demand for liquid crystal display (LCD) panels from the Covid-19 pandemic.
But LCD panel prices are expected to drop this year according to Omdia’s forecast.
Revenue from LCD TV panels is expected to drop 32% from last year’s US$38.3 billion to US$25.8 billion.
While shipment based on surface area is expected to increase 2% over the same time period, revenue is dropping from unit price drops.
LCD TV panel prices begin dropping last year during the second half since it began rising around June 2020.
Prices of panels have now returned to pre-pandemic levels.
According to Omdia, companies have dropped their LDC TV panel shipment goals.
BOE dropped theirs from 65.5 million to 60 million; HKC dropped it from 49.5 million to 42 million; CSOT from 45 million to 44.8 million; and LG Display from 23.5 million to 18 million. Innolux’s also dropped theirs from 34.5 million to 34.6 million.
Meanwhile, revenue from handset panels is expected to drop 8% from last year’s US$4.75 billion to US$4.37 billion.
Chinese companies are expected to be the most affected due to the lockdown measures there around Shanghai.
Meanwhile, OLED TV panel shipment will increase 12% from US$4.8 billion to US$5.4 billion.