According to the shipment survey of world's top ten LCD monitors by WitsView, the research institute WitsView under TrendForce, in June 2011, due to the demand from commercial markets and the active digestion of channel inventory, the demand-pull of distributors gradually recovered, shipment rose from the trough, and it grew 13.1% MoM relative to May, a total of 11.84 million units; system integrators benefited from the recovery of demand-pull from the U.S. and the Chinese brands, shipment was up 2.9% MoM relative to May, a total of 12.66 million units. Although brand shipments re-stabilized in June, the overall economic conditions and the end-market demand must be taken into account to determine whether the demand-pull will continue or become short-lived.

 

Observed from the June inventory of system integrators, due to the demand-pull recovery from the U.S. brands and June being the end of an accounting quarter for system integrators, and also due to the pressure from the semi-annual reports, the inventory levels were deliberately reduced, which resulted in a drop of overall inventory level of finished goods. In addition to the strict inventory control by the system integrators, upstream panel makers also wanted to adjust the excess inventory on hand through lowering the production capacity utilization, while downstream brands maintained a conservative strategy to pull goods; when facing an uncertain buying atmosphere in the second half of the year at the same, the overall supply chains consistently maintain a conservative and careful attitude. WitsView analyst, Anita Wang, indicated that as long as the upstream panel makers control their production capacity effectively, the hidden worries about an excess supply of panels should not spread, then the overall monitor industry will gradually be in a healthy condition.

 

At present, WitsView maintains a cautiously optimistic attitude about the third quarter shipment of LCD monitors, brand shipment is expected to have a growth of 5-8%. However, the demand-pull situation of LCD monitor in the third quarter will be indirectly affected by the demand for TV. If the demand for TV does not improve, then psychological factors such as panel production capacity and the demand for TV will affect the demand for monitor panels and fluctuation of prices. Therefore, WitsView stresses once again that factors such as the adjustment conditions of panel production capacity and the demand for TV will be a major focus that affects the market variations in the second half of the year.

 

 Figure-1  LCD Monitor Top10 SIs and Brands shipments from 1Q11 to 3Q11

 Source: WitsView，2011/7, unit:10k