Rapid price declines have ensured consistent and aggressive market expansion. The panel price reduction is likely to continue until participants hit the target price at which demand is likely to rise exponentially. Panel manufacturers need to be in a constant state of alert to fine-tune their cost structures to take care of bottom line growth. They also need to prepare themselves for the risks and rewards that the consumer electronics segment offers.
Panel Manufacturers Must Successfully Manage Cost Structure to Sustain Market Competition
The gap between tier one and tier two participants has never been wider and neither has been the scale of capital investments that are now required to get into the higher leagues. The key to flourishing in this capital-intensive and cyclical market is to stay ahead of the competition by constantly innovating and building newer growth trajectories. Panel manufacturers need to lower their costs, simultaneously focusing on serving newer application segments in order to stay in contention.
"Sharing the ever-increasing capital through partnerships is increasing in importance, meaning panel manufacturers can no longer operate individually and need to concentrate on partnerships throughout the value chain," notes the analyst. "Vertically integrated industry participants are best positioned to tide these changes that are threatening to take down many a smaller participant."
