WitsView : Channel Inventory Awaits Clearing; LCD Monitor Demand in 4Q09 Will Be More Conservative

According to WitsView’s global LCD monitor SI shipment survey, top 10 SI shipments recorded a total of 39.65 million units 3Q09, up by a 3.3% QoQ. Overall market for LCD monitors – channel inventory level is under the adjustment period as it is still at a high level; moreover, as September is the closing month of the third quarter, SIs were strategically reducing their inventory on hand, therefore, shipment figures were relatively stable. In October, even with the boost of China’s National Day holiday sales, sales figures in early October were merely in line with the expected level; as a result, channel inventory in China will still need to be adjusted in October. As for sales in other major regions, Europe is the only one with pleasing performance, while other regions seemed unaffected by the sales of the hot season in 2H09. In light of the above, the market still adopts a conservative attitude toward global LCD monitor demand in the fourth quarter.

On the other hand, according to WitsView’s top 10 monitor brand survey, 3Q09 shipments inched up 7.7% QoQ, to 33.66 million units. At this stage, global LCD monitor demand has not shown salient growth momentum from shipments in the hot season during 2H09, moreover, under the negative impact of high channel inventory, major brand vendors showed lackluster shipment performance. Looking at market demand in 4Q09, shipment performance will peak in October – this is spurred by advanced shipment for China’s National Day Holiday and Christmas sales in Europe and the U.S., coupled with the anticipation of shipment growth due to Dell’s fiscal quarter end and HP’s fiscal year end, the top ten LCD Monitor brand shipment is expected to grow by 13% in October. However, after November, with uncertainty in market demand visibility and in the decline rate of panel prices, the preferred strategy is to maintain a conservative stance by reducing the inventory on hand, in order to reduce losses from potential price drop.

About WitsView

Founded in the year 2004, WitsView, a subsidiary brand of DRAMeXchange, is composed of a team of TFT-LCD industry experts. The research field covers the development and market trend of upstream components, mid stream panels and downstream system integrators and retailers.
For more about WitsView, please visit www.witsview.com

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Media contact: 　

Nicole Chen
WitsView Technology Corp.
Tel:+886-2-7702-6888 ext. 950
Fax:+886-2-7702-6898
NicoleChen {at} witsview(.)com