TrendForce: Rising Inventory Pressure and Weakening Shipment Lead to 10% Drop in Q1 LCD Monitor Shipment

Based on the survey by WitsView, the display research division of the global intelligence provider TrendForce, the global top ten LCD monitor brands’ shipment in December 2013 declined sharply 11.8% MoM and grew slightly from the same period last year as LCD monitor brands had distributed goods in advance to retailers in October and November for the year-end holidays and held conservative procurement for the following slow season in the U.S. and Europe. SI makers’ December shipment dipped 5.8% MoM and trimmed 6.9% YoY due to SI makers’ inventory level adjustment for the year-end financial inventory settlement and some panel makers’ delayed panel shipment.      

WitsView research manager Anita Wang indicates as brands in Q4 last year aggressively boosted shipments and the end demand digested slowly, a huge amount of inventories accumulated at the retailer end and the Q1 inventory digestion is the key point to obverse. Panel supplies for certain sizes and spec start to get tight in Q1, affecting the LCD monitor set shipment.

LCD monitor SI makers’ Q1 shipments are impacted by both the labor shortage and fewer working days during the Lunar New Year as previous years as well as brands’ weakening pull-in momentum. WitsView expects a more than 10% QoQ decline in both brands’ and SI makers’Q1 LCD monitor shipments.

Figure: Top Ten LCD Monitor Brands’ and SI Makers’ Quarterly Shipment