WitsView: Weak Demand in IT Market, Leading to Decline in SI and Brand Shipments
According to the latest survey by WitsView, global LCD monitor shipment from the top ten SIs dropped by 1.3% MoM to 11.77 million units, marking a shipment decline for four consecutive months. The end-market demand in Europe and the US market remained weak, coupled by the slow economic growth in China due to the natural disasters, demand for summer sales promotion was not as strong. In the meantime, under the expectation of continued panel price falls, brand vendors’ product pull-in slowed down. Therefore, in July 2010, LCD monitor shipment from global top ten brand vendors decreased by 4.2% MoM to 10.70 million units based on the latest survey by WitsView. As WitsView previously expected on inventory closeout at peak season, in 2H10, demand remained weak in IT market, coupled by the continued panel price decline and the rising inventory, it was not easy for brand vendors to fight for their annual shipment target, or might even affect their profit. Since panels accounted for 70~80% of the total cost of LCD monitors, the fluctuation of panel prices determined sales strategies in sets. Therefore, brand vendors will rely on LCD monitor panel price to decide their product pull-in level. Looking into August, WitsView takes a conservative attitude and estimates that growth in shipment volume from the top ten brand vendors and SIs will be less than 5% MoM each.