Tablet Shipment Rebounds in April with Projected 15%-20% Growth in May, says TrendForce

Tablet Shipment Rebounds in April with Projected 15%-20% Growth in May, says TrendForce

The large-sized panel shipment decreased by 2% MoM to 65.29M units in April. With growing tablet panel demand, the large-sized panel shipment is expected to increase by 5% in May, according to the latest survey by WitsView, the display research division of TrendForce.

The TV panel shipment is likely to stay on par with April or decline slightly by 1%. The monitor and NB panel shipment will both grow by 1-2%, and the tablet panel shipment is expected to reach 15%-20% growth as the white-box and brand tablets, including ASUS, Lenovo, acer, and Xiaomi, increase channel distribution for new models.   

“In Q3, tablet and smart phone panels are projected to reach a shipment peak, and the IT panel price is likely to continue to increase,” says WitsView Senior Research Manager, Jeffy Chen. “However, after mid-Q3, IT brands’ inventory adjustment scale will determine the ensuing trend for IT panel prices.” 

 “Panel makers’ IT panel capacity is constrained in Q2 by the rising demand for LCD TV panel, tablets, and smart phones,” Chen adds. “If panel makers take into account profits and market growth and gradually lift the proportion of tablet and smart phone panels in the G5 production line, the NB panel will be the first to experience supply shortage, which in turn will not sufficiently meet NB brands’ demand for sets. In particular, Microsoft’s launch of low-priced NB subsidy, also propelled the 1H 2014 NB panel demand to be stronger YoY. ”

Main panel makers have different production strategies on wide-viewing-angle feature (IPS/VA) and diverse sizes, resulting in the difficulty for brands’ new product kickoffs to have unified specs. It also caused a supply gap for the TN product. With various factors in place, the tight supply for both 19”W/21.5”W monitor panels and 14”/15.6”NB panels will boost the recent price increase for IT panels.  As the panel products are undergoing a reshuffle at the supply end, this year, IT brands cannot effectively acquire panel supply, which in turn will increase the risk of affecting the annual shipment goal achievement.    

The total LCD TV panel shipment in April reached 20.51 million units, growing nearly 6% YoY. Due to new models promotions, Labor Day holidays in China, and FIFA World Games, brand clients showed stronger demand for panels than the previous year, topped with diversifying product mix at the panel supply end, which resulted in tight supply for some sizes. 

The monitor panel shipment reached 13.28 million units, declining 5.1% MoM. The NB panel shipment hit 15.37 million units, declining 3.2% MoM. The tablet panel shipment rebounded slightly to 16.11 million units in April, rising 2.8% MoM but still falling by 10% YoY.

Figure 1: Large-sized LCD Panel Shipment in April (K units)