Click to enlarge

The report noted that LCD panel makers have "learned from the previous industrial cycles how they can better handle their inventory. In the past, panel makers would blindly gear up their output and feed the market regardless of demand".

While safe inventory levels are usually considered to be somewhere between one to two months, "notebook clients' orders have been significantly weaker compared to the first quarter", the report noted, adding that prices for PC applications "have dropped for the second half of June because of weak demand, and the price pressure will persist in July as clients continue to clear their inventories", according to the report.

But beginning in August, brand-name vendors and system makers will have cleared their panel inventories and started preparing for the Northern back-to-school demand by placing rush orders and that the panel market in September will look even better, according to digitimes.