Windows XP's Retirement Propelled Stronger-than-Expected March LCD Monitor Shipment

The March 2014 LCD monitor shipment by brands and SI makers surged by 20.6% and 32.1% respectively, according to the survey by WitsView, the display research division of TrendForce. The surge was mainly attributed to the lower base period for February shipment, topped with several brands actively pushing for sales performance for the financial quarter-end in March.

“As for regional trends, Microsoft halted support for Windows XP OS, resulting in sales increase within the North American enterprise market, further aiding in healthy growth for American brands’ March shipment,” says WitsView research manager Anita Wang.” Many makers in the Chinese market prepared in advance for the set inventory as they were cautious about the tight supply in the region. The sales of low-priced models were also ideal in the Asia-Pacific region, and all the factors mentioned above propelled the March shipment to be stronger than expected.”   

Historically, the Q2 monitor shipment has been supported by the commercial market. The desktop replacement sales due to Microsoft ending support for XP indirectly contributed to this year’s growing commercial market LCD monitor sales. Moreover, Microsoft’s subsidy policy on the AIO models priced under US$349 also forces brands to remain cautious and begin restocking.

Wang indicates that the issue gained traction in March, spilling over to the Notebook segment, resulting in stronger than expected Q1 shipment, which is expected to continue through Q2. However, the shipment volume is still constrained with the LCD monitor panels remaining in tight supply with the weak consumer market. With both positive and negative factors in place, WitsView projects a Q2 shipment comparable to the level in Q1. 

It is worth noting that, due to TV brands’ strong panel restocking in April, the LCD monitor panel capacity is continuously restricted. In addition to the 21.5”W panels, large-sized panels such as 23”W IPS, 23.6”W and 24”W TN panels are all experiencing supply gaps. With the panel supply shrinking, some sizes show shipments difficulties. Moreover, as SI makers usually have low panel inventory, they need to prepare for panels in advance.

Figure1: Top Ten LCD Monitor Brands and SI makers’ Shipment Change

Source: WitsView, Apr.-14