The COVID-19 pandemic and the restrictions it causes affect many industries around the world. However, the epidemiological situation has also brought about significant changes in our lifestyle. Today we would like to inform you about the recent distortions that have taken place in the global display market.
What is the current situation?
For several months, on the consumer electronics market, we have been observing a growing demand for computers, tablets, TV sets, and other devices that make it easier for us to work and learn at home. Rising hardware prices only slightly reduced the dynamics of demand. This swift in supply chain balance causes shortages of ICs and TFT glass and the subsequent price increase. This situation has worsened in recent months. Available economic reports predict that the current rise in LCD panel prices will continue until the end of the year, and global demand for LCD panels will remain high.
The market situation is also influenced by some Japanese and Korean producers who decided to withdraw LCD panels from production in favor of OLED displays.
The issue of the trade war between the US and China and the current political situation in the United States connected with the presidential elections are also important.
How does this affect our business?
The global situation is reflected in our suppliers’ price increase, by up to 20-30%, and in the extension of component delivery times. To avoid delays, we encourage our clients to place framework orders for 2021 as soon as possible – especially in the projects in which the key factor is implementation time. These steps will allow us to avoid shortages of materials and minimize the risk of delays in deliveries.
At the same time, we would like to inform you that we verify each component’s cost with the suppliers before the order’s acceptance due to the increased prices. It may affect the time needed to prepare the offer.
According to analysts, the situation related to the shortage of components may persist until mid-2021. We make every effort to ensure that it affects our clients as little as possible. We hope you will understand. Moreover, we believe that mutual support will allow us to pass through these difficult times.
If you have any questions, please contact us.
