Market Research Study: PV component profits 70% lower in Q4’11
Wellingborough, UK - PV component profits are set to fall by 70% year-on-year in Q4’11 according to new analysis from IMS Research.
The market research firm’s analysis of the polysilicon, wafer, cell, module and inverter industries found that that collapsing prices throughout 2011 will cause gross margins for the whole PV industry combined to slide by 17 percentage points to just 12.4% in Q4’11.
IMS Research has found that despite this worrying news, margins and profit will actually increase sequentially in Q4’11 as much of the collapse in margins had already happened earlier in 2011. Ash Sharma, Senior Research Director for PV commented “Gross margins will stabilize somewhat in Q4’11; in fact total industry profit will increase by 10% compared with the third quarter.
Despite the slight uptick in margins in Q4’11, IMS Research predicts further gloom for the industry and forecasts that margins will slide further in 2012 and will reach just 10.4% in the first quarter of next year.