19.5”W to be new focus for monitor brands

TAIWAN: According to the shipment survey by WitsView, the display research division of the global intelligence provider TrendForce, the global top 10 LCD monitor brands held a total shipment volume of 10.61 million units in January 2013 surging 11 percent from December last year and growing 6.5 percent from the same period last year.

The significant growth can mainly be contributed to the following factors:
1. The previous shipment basis period was lower as December 2012 was the relative bottom in Q4 for most brands;
2. Certain February demands were advanced to January as during the Lunar New Year holidays in February, most brands distributed some February demands to retail channels in advance;
3. Brands boosted sales for the financial year-end as January was the financial year-end for Dell and quarter-end for some brands who wished to achieve excellent results.
 
As most brands shipped some February demands in advance, with fewer working days in February, the February shipment is expected to decline 15-20 percent from January. The January shipment showed positive growth from the same period last year, but the reason for the growth was that the Lunar New Year fell in January in 2012, if the combined shipment of January and February 2012 is compared to that of this year, the decline is projected to be 8 percent, showing no sign of rebounding at the demand end.

WitsView projects that the global monitor brands’ shipment in Q1 2013 will drop trim 6.4 percent QoQ. The AIO shipment in Q1 will benefit from Apple’s delayed timing for large distribution of new models from Q4 last year to Q1 this year, which will boost the overall AIO shipment as much as 15-20 percent QoQ. If the AIO shipment is included, the LCD monitor shipment will decline only 4.4 percent in 1Q13.

WitsView’s research assistant manager Anita Wang indicates that the new size 19.5”W LCD monitor is the new bright spot focused by all brand vendors in 2013, the product pricing depends on brands’ strategic concerns, which range from expanding market share to lifting revenue and determine the selling prices, and the reasonable price will be set between 19”W and 20”W.

The five brands, Acer, AOC, Philips, ViewSonic, and ASUS have led the way to mass-produce the 19.5”W LCD monitors in Q4 2012. The remaining brands have to enter the 19.5”W market later mainly on concern of the single panel source or relations with panel suppliers.
 
Most brands’ retail selling price of the 19.5”W LCD monitor is similar to that of 20”W mainly because the current 19.5”W panel supply is limited. On the other hand, panel makers are gradually trimming the 20”W panel supply, and brands have no needs to set too low prices at the beginning as the new product aims at profits.

However, some brands adopt reverse pricing strategy by targeting China for trial and sell at a comparable retail price as that of the 18.5”W low-priced model, adding a major uncertainty to all brands’ strategy manipulations.