Great: Artificial shortage/ price fixing coming up.

[Wiseguy2001]

If this is anything like what recently happened to DRAM prices this is going to suck, and how is it legal?

In a bid to lower product inventory, panel maker AU Optronics has cut its glass purchases by 15 per cent and plans to reduce capacity-utilization rate to about 80 per cent in July.

According to Cens.com AU is not alone it trying to cut back on its inventories. Chimei Innolux which is the largest TFT-LCD panel maker in Taiwan, and Korean counterparts Samsung and LG , also reportedly plan to cut production to protect panel prices.

High inventory levels in TFT-LCD panel distribution channels have caused prices to drop, so many major panel suppliers are trying to cut production. AUO is expected to lower production capacity to 80 per cent in the third quarter, from about 85 per cent.

Chimei Innolux also to reduce production capacity from about 90 per cent to 80 per cent Samsung and LGD have cut production capacity in the second quarter, and are expected to further cut 5 per cent in the third quarter.

Fudzilla

 

[jeremyshaw]

Its legal since of fewer panels sales, lol. No tech company in this consumer industry likes keeping stock of old tech, as the article has stated would happen otherwise.

 

[munkle]

How is this illegal? They made too many as it stands and you want them to keep making the same amount? There is hardly a shortage of lcd panels. Displays are super cheap you can get 22" 1080p monitors for like $90 on sale. It's not price fixing when you there is too much of something on the market and its value goes down to or below cost of production and you want to make less of it because you don't make any money.

If they all got together and said this is the minimum price then that would be illegal, making less of something isn't otherwise any kind of limited edition anything would be illegal.

 

[daddy-o]

Legality hinges entirely on the suppliers communicating with each other about orders. If customers are buying fewer panels and inventory is piling up, it's just good business to lower material orders.

 

[hcforde]

If you think that is bad what about 27" panels for 3D monitors? Back in Feb 2011 I was told there was a shortage of them, so what we see are high prices for ACER and Samsuung 3D monitors. ASUS has opted out untill the pricing becomes more reasonable.