Prices of liquid-crystal display panels fell in November due to increased production from Taiwanese flat panel makers and reduced demand from computer and TV set manufacturers, according to industry data released yesterday.

According to a report from the market researcher DisplaySearch, LCD panels for 42-inch TV sets stood at $348, while the price of 46-inch LCD panels logged in at $453 this month. The prices are down $4 and $2, respectively, from a month earlier.

Panel prices of 42- and 46-inch LCD panels remained as high as $360 and $470, respectively, for two months from August thanks to a tight supply that fell short of the market demand.

But prices started to edge down from mid-October as Taiwanese LCD manufacturers stepped up production to meet the increased global demand, DisplaySearch said.

Worldwide demand for flat panels, however, failed to live up to the increased supply as computer and TV set makers reduced their purchases of LCD panels for inventory adjustment, it said.

TV and computer manufacturing companies had stocked up on LCD panels ahead of the start of the holiday season in anticipation of more sales, but then held off on further purchases, market watchers said.

The Texas-based market research firm added prices of other flat-screen panels used for computer monitors and laptop computers had started to lose ground since September.

Prices of 19-inch LCD panels used for computer monitors stood at $76 this month, down $10 from two months earlier, it said.

Some market watchers, meanwhile, estimate that the downturn in LCD panel prices could continue throughout next year.

“There is an oversupply in TV panels and that will give downside pressure to demand for LCD TV panels next year,” a report from Dongbu Securities Co. noted.

Others, however, predicted a recovery in panel prices next year.

“The price fall will continue through March 2010, but afterwards rising demand from developed countries and emerging markets will help bring about a V-shaped rally in LCD markets,” read a report from Shinhan Investment Corp.

Hopefully this will encourage cheaper LED backlit LCD display

I think this is different issue.

The other way round, LED is shortage now.