2012 top 10 LCD monitor brands showed first decline in annual shipment

TAIWAN: According to global shipment survey by WitsView, the research division of TrendForce, the global top 10 LCD monitor brand vendors’ 2012 shipments amounted to 128.7 million units, dropping 8 percent YoY. Most brand vendors showed poor shipment performance in H1’12, but the overall shipment ratio in the first and second halves of the year is nearly 50:50, indicating the demand didn’t surge on the traditional peak season in the second half.

In view of individual monthly performance, top 10 brands’ shipment reached 9.55 million units in Dec’12 with a MoM shipment decline expanding to 14.5 percent from the 10.7 percent drop in the same period of the previous year. SI makers’ total shipment amounted to 11.66 million units, slightly growing 0.3 percent MoM, and was comparable with the shipment in the same period of the previous year.

WistView’s research assistant manager Anita Wang indicates that, the LCD monitor brand vendors’ shipments declined 14.5 percent in December, due to the three main factors:

1. Most brand vendors had boosted shipments in October and November, and the timing for traditional Q4 procurement has passed in December;

2. No following demand would support with the coming of slow season; and

3. Brands saw inventory control as priority. LCD monitor SI makers’ shipments were supported by certain brand clients’ last year-end shipment sprint, leading to most SI makers’ shipment growth in December, however, the overall shipment grew 0.3 percent slightly as the shipment from some Korean maker’s in-house assembly plant dropped significantly.

The overall LCD monitor brand vendors’ shipment for entire 2012 was 154.4 million units, declining 7.3 percent YoY, dropped for consecutive two years, among which, top 10 brands showed first decline in recent years. WitsView projects that the 2013 monitor shipment will be 148 million units with a possibility to revise down, dropping 3-6 percent YoY. It indicates 2013 is a year full of difficulties and challenges, with macro economy staying stagnant, consumer spending squeezed and changes of users’ habits on IT products, the overall demand for LCD monitor continues to weaken.

To maintain the output value, brands will continue to expand proportion of large-sized products and launch new size products to gain more profits.