Notebooks threatened by panel oversupply

windowscomputexTouch screens could be facing an oversupply as it emerges shipments for notebooks will be lower than expected in Q3 – despite the predicted quarterly growth.

Digitimes reports that top tier vendors like Innolux and BOE, as well as other vendors in China and Taiwan, are expected to expand their production through Q3 and into early 2014, threatening oversupply in the market.

According to Digitimes’ industry sources, 4.3 million square metres of panel surface ar expected to be manufactured in 2014. The penetration rate for the screens in notebooks should rise throughout the year.

But for 2013, it’s possible the oversupply will be three times higher than the 2.3 million square metres actually needed, which could have a domino effect on pricing. The penetration rate is going to sit at a dismal 10 percent for 2013.

The report does not bode well for the Windows 8 touch screen – with little market interest already, one thing Microsoft needs like a hole in the head is pricing problems in the supply chain for Win 8 manufacturers.