The brand vendors declined more severely than the SIs, largely due to the terminal sales in the low season. The previous inventory in the distribution channels needed time to be digested. The strengths to pull inventories slowed, affecting the shipments of the brand vendors.
In April, Dell was the best performing among the top ten brand vendors. Although the shipments of most brands had a decline up to two digits, due to the considerable gains in the small and medium enterprises and the education markets, coupled with the spurt shipments at the end of the accounting quarter, Dell bucked the trendof about 4 percent.
In addition, as the demand in the business markets grows stronger in the second half of the year, with the US presidential election just around the corner, there should be relevant programs to revive the economy to be released in the second half of the year. Therefore, not only Dell, other brands will have an opportunity to replenish their capacity after the third quarter. and saw a growth.
As to the outlook of brand shipments in May, it's difficult for the terminal demand to shake off the influence of the low season. Shipment level will be similar to April's. June is the end of an accounting quarter and the time to prepare for the semi-annual balance sheet for most vendors.Under the dual pressures of earnings reports and performance, the shipments are expected to grow significantly; moreover, with continuous effective control of inventory channels, the high season in the second half of the year shall soon arrive. The strengths of the distributors to pull inventories will grow gradually, and therefore, the growth rate is expected to reach 7-10 percent MoM.
Table 1:LCD Monitor Top10 SIs and Brands shipments from Mar. 11 to Jun. 11
Source: WitsView, Taiwan.
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