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Chimei Innolux August sales down on price drop: analysts

Chimei Innolux August sales down on price drop: analysts

Taipei, Sept. 10 (CNA) Flat panel maker Chimei Innolux Corp.
witnessed a slight decline in August sales largely on lower average sale prices, analysts said Friday.
Chimei Innolux posted NT$45.54 billion (US$1.43 billion) in monthly sales on Thursday, down 0.9 percent from July.
During the same period, its shipments of large-sized displays -- which refers to those 10 inches or larger -- fell 3.8 percent to 9.85 million units from July, while shipments of small and medium-sized panels rose 8.4 percent to 35.45 million units.
"The sales decline reflected falling product prices, especially lower computer monitor prices amid weakening global demand, " Taiwan International Securities analyst Michael Chiang said.
Chiang said that after a merger with Innolux Display Corp., monitor production has weighed more in Chimei Innolux's overall product line.
"With PC sales weakened by a slowing global economy, Chimei Innolux's sales were affected by the current product portfolio, " Chiang said.
Chimei Innolux was officially established in March after Chi Mei Optoelectronics Corp. completed a merger with Innolux Display and TPO Displays Corp.
Rival AU Optronics Corp. (AUO) posted a 12 percent month-on-month increase in August sales, reflecting higher shipments of large-sized TV screens, analysts said.
AUO has benefited from a higher portion of large-sized display output, particularly after TV demand in China recovered as Chinese consumers went on a buying spree ahead of the prolonged holiday for China's Oct. 1 National Day, they said.
Henry Wang, an analyst with Taiwan-based research institute WitsView, said that to his knowledge, Chimei Innolux was cutting its output amid uncertainty over market outlook.
"Concerns over flat panel demand remain, prompting Chimei Innolux to scale back its production to some extent, dealing another blow to its revenue in addition to the falling product prices," Wang said.
(By Pan Chi-i and Frances Huang)




Updated : 2021-04-13 07:39 GMT+08:00