LCD Monitor Demand to Be More Conservative in Q4: WitsView

Taipei, Oct. 30, 2009 (CENS)--The world's top-10 system integrator (SI)'s LCD monitor shipments increased 3.3% quarter-on-quarter (QoQ) in the third quarter to reach 39.65 million units, according to WitsView, a major display market research firm.

In addition to the QoQ increase, WitsView's latest global LCD monitor SI shipment survey showed that the distributors' inventory in the overall market is under adjustment as it is still high; moreover, September is the closing month of the third quarter, SIs were strategically reducing inventory, therefore, shipment figures were relatively stable, WitsView said.

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 result, distributors' inventory in China will still need to be adjusted in October. As for sales in other major regions, Europe is the only one with rosy performance, while other regions seemed unaffected by the sales of the hot season in the second half.

In light of the above, the market is still conservative towards global LCD monitor demand in the fourth quarter.

On the other hand, the top-10 monitor brands' shipments in the third quarter 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 the second half. Moreover, under the negative impact of high channel inventory, major brand vendors showed lackluster shipment performance.

Looking at market demand in the fourth quarter, WitsView said, shipment performance would 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-10 LCD monitor brand shipment is expected to grow by 13% in October.

However, the research and consulting firm said, after November, with uncertainty in market demand visibility and the decline of panel prices, the preferred strategy is to maintain a conservative stance by reducing inventory to reduce losses from potential price drop.