Market Trend

According to the latest survey by WitsView, a research division of TrendForce, MCI index slipped by 17.2 points to 6246.3 points from October 18 to October 29, 2010. Additionally, based on WitsView’s Quarterly Panel Price Forecast and Quarterly Panel shipment reports, prices of three applications fell by 8-16% QoQ on average while the shipments declined by 4% QoQ. Both prices and volume went downward in 3Q10; of which, the profitability level of IT product was the weakest of all, and that of TV product was slightly better, which moderately offset the loss from IT products. In 3Q10, the high inventory level and the weak end-market demand led to the slide in both panel prices and shipments, which further weakened panel makers’ financial results, and their operating margin posted a substantially decline QoQ; among which, AUO recorded merely a 0.2% growth in operating margin. Therefore, although downstream vendors stay positive toward the year-end hot season, the demand remains unclear. The market confidence is slightly shaken, leading to a fair decline in MCI index.