TrendForce: Large-sized Panel Shipment Drops 10% in Jan 2014 with Tablet Panel Weakening Constantly

According to the latest survey by WitsView, the display division of the global intelligence provider TrendForce, the large-sized panel shipment in December 2013 reached 73.71 million units, declining 4% MoM. WitsView projects panel shipment of all application will weaken in January with a 10-11% drop in the overall large-sized panel shipment. The TV panel will decline 10%, monitor and NB panel shipment will trim 14% and 11%, and tablet panel shipment will decrease 10%.

In December 2013 the demands for Lunar New Year holidays and some brands’ replenishment lifted the shipments of the 32”, 39.5”, and 40” panels, and the December LCD TV panel shipment came to 19.73 million units, rising 1% MoM. The monitor panel market was affected by brand clients’ inventory adjustments and only the 21.5” and 24” showed stronger momentum, leading to a total shipment of 13.68 million units, dipping 2% MoM. The NB panel market was influenced by the heating up demands in Asia-Pacific region, Europe, and emerging markets with panel makers’ rush orders for 14” and 15.6”continuing into December, supporting a panel shipment of 16.25 million units, rising 3% MoM. In the tablet market, only the demand for iPad series panels remained stable, other brands and white-box brands begun inventory adjustment, and the December tablet panel shipment reached 24.03 million units, declining 12% MoM.

According to WitsView senior research manager Jeffy Chen, the Taiwan-based makers INX and AUO had relatively stable performance in December among all makers, seeing large-sized panel shipment growth 6% and 9%, respectively, as they benefitted from the rush orders of NB panels and the steadily rising LCD TV panel shipment. Contrarily, the Korea-based makers LGD and SDC had a monthly 7% drop in the large-sized panel shipment because of the strategic adjustment on the IT panel production and tablet clients beginning to tune panel inventories.

Besides, the Chinese makers, BOE, CSOT, and CEC-Panda, had distinguish shipment performances as CSOT and CEC-Panda saw 14% and 28% monthly growth in large-sized panel shipments due to Chinese brands’ rising demand for the Lunar New Year, compared to BOE’s 18% monthly drop because of the softening tablet demands from the white-box and brand clients. Japanese panel makers suffered from main tablet clients’ weakening demands as Panasonic LCD, Sharp, and JDI showed monthly drops 48%, 19%, and 34%.

WitsView indicates panel makers actively expand the tablet panel market as the IT panel profitability goes down, and while setting high tablet growth target, they trim the production for IT panels, causing concerns for the IT panel supply-demand balance in 2014. Nevertheless, based on Witsview’s survey, the overall Q1’14 tablet panel demand is weak because on top of the light season effect, most brands’ new models will only hit the market after Q2, while Apple, the No.1 maker of the tablet market, will start to adjust the iPad series panels.  

In Q4’13, suppliers made breakthrough on the yield of the iPad series panels, along with Apple’s new model launches and the year-end peak season, contributing to a procurement volume of 30.3 million units for the 7.9” and 9.7”combined, of which 13.5 million units for the 7.9” and 16.8 million units for the 9.7”. Apple is expected to start inventory adjustment in Q1’14, the panel demand will get stronger for the new iPad mini 2 while the demand for the 1^st-generation iPad mini declines. The overall 7.9” panel demand is expected to trim to 11.8 million units, the 9.7” panel sees a demand declining to 14 million units, and the overall iPad series panel demand is projected to reach 25.8 million units, declining 15% QoQ.

Chart 1: TFT-LCD Panel Shipment in Dec-13 (K units)

Source:WitsView