WitsView: Top-tier LCD monitor makers will be in the driver’s seat in 2Q10
According to WitsView’s global survey, top ten monitor SI shipments fell by 2.6% QoQ to 38.36 million units in 1Q10. Meanwhile, top ten monitor brand shipments declined by 6.3% QoQ to 33.12 million units. Although both SI and brand shipments declined, shortages of labor and upstream components in 1Q10 effectively deterred downstream vendors’ order reductions in the slow season. Hence, under the expectation of the conditions mentioned above, demand from restocking is the main reason that LCD monitor demand did not decline substantially in 1Q10; in particular, top-tier makers who endeavor to expand their market shares are the most aggressive in their restocking strategies.
With regard to outlook for the second quarter, Linda Lin, WitsView’s research manager, indicated that facing the ongoing price war in the end-market, top-tier system integrators and brand vendors will be in the driver’s seat – they have the advantage of a healthy outlet for their products by leveraging their low production costs and high market share. Take SI volumes of TPV and Innolux for example, with gradual build-up of set inventory on hand, their rate of restocking will influence the overall market trend. If the top five brand vendors attempt to adjust their previously restocked inventory, it would drastically impact the overall demand. At this stage, as players in the market are striving to achieve their annual target, there is no reason to be pessimistic. However, taking into account stagnant shipments from second-tier vendors, and the hidden motives behind top-tier SI and brand vendors’ product pull-in strategy, WitsView estimates that top ten brand vendors’ shipments will only grow by 3%~6%.
Worldwide top 10 brand shipment by unit (Unit: K pcs)
Worldwide top 5 SI shipment by unit (Unit: K pcs)
