According to TrendForce research, terminal demand remains weak due to repercussions of the Russian-Ukrainian war, rising inflation, and China's pandemic lockdowns as monitor brands began to reduce purchasing of LCD monitor panels in 2Q22. LCD monitors panel shipments in 2Q22 are estimated at 42.5 million units, down 11.3% QoQ.
According to TrendForce, LCD TV panel quotations bore the brunt of continuous downgrades in the purchase volume of TV brands and pricing for most panel sizes have fallen to record lows. Recently, it was announced that the 32-inch and 43-inch panels fell by approximately US$5~US$6 in early June, 55-inch panels fell approximately US$7, and 65-inch and 75-inch panels are also facing overcapacity pressure, down US$12 to US$14. In order to alleviate pressure caused by price decline and inventory, panel makers are successively planning to initiate more significant production control in 3Q22. According to TrendForce’s latest research, overall LCD TV panel production capacity in 3Q22 will be reduced by 12% compared with original planning.
According to TrendForce research, due to China's lockdowns and inventory adjustments by notebook brands, April notebook panel shipments totaled 17.5 million units, down 21.5% YoY, and a new low for shipments since April 2020 and the advent of the COVID-19 pandemic. At the same time, shipments of notebook panels in 2Q22 is estimated at 55.1 million units, down 21.2% QoQ and 19% YoY.
As the Russian-Ukrainian war directly affects Eastern Europe and, indeed, the entire European market, the supply of raw materials has destabilized and prices continued to soar, exacerbating inflation and pummeling the global economy. In addition, lockdowns and work suspensions caused by the recent pandemic outbreak in China and the government’s insistence on a dynamic zero-COVID policy may lead to complex problems such as reductions in factory production efficiency and logistical delays. TrendForce indicates, the uncertainty of current global political and economic circumstances have upset demand for three major display applications including TVs, LCD monitors, and notebooks, overshadowing 1H22 with pressure to correct expectations.
According to the latest TrendForce research, although factors such as panel and component mismatch and supply issues and the fading effects of the stay-at-home economy influenced shipments of e-sports LCD monitors (defined as refresh rates above 100Hz) in 2021, many brands targeted e-sports LCD monitors in 4Q21 with a strategy of aggressively reducing e-sports product pricing to prompt a volume surge and successfully boosted shipments of e-sports LCD monitors to 22.8 million units in 2021, with an annual growth rate of 24%. However, growth momentum will slow in 2022. In addition to long lead times, the most significant variable remains the impact of the Russian-Ukrainian war. If the war continues, it will impair European market demand and affect the shipment performance of e-sports-related products. In addition, the Russian-Ukrainian war has triggered a surge in the prices of crude oil, metal, and agricultural commodities, spiking previously growing inflationary pressure. Thus, TrendForce conservatively estimates shipments of e-sports LCD monitors at 26.1 million units in 2022, with an annual growth rate of 14%.