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WitsView: Mounting Pressure from Increase in LCD Monitor Inventory As Shipments from SI and Brand Vendors Declined

24 June 2010 Display

According to a recent survey by WitsView, a research division of TrendForce, LCD monitor shipment from global top ten brand vendors declined by 4.2% MoM to 10.75 million units in May 2010. Linda Lin, a research manager of WitsView, indicated that major brand vendors face the pressure of rising inventory due to the slow season in IT market. Furthermore, because of the weakening demand, brand vendors could no longer gain more market share through sales promotion and retailer incentive policy. Thus, at this point, most brand vendors took it as the priority to clear away the inventory from 1Q10 and lowered their production. Market demand is unlikely to grow in June. Yet, it is expected that shipment may have a slight increase by 3-4% MoM in order to reach the sales goal in 1H10.
On the other hand, based on a survey by WitsView, in May 2010, global LCD monitor shipment from top ten SI declined by 3.4% MoM to 13.1 million units. In 1Q10, the rising of panel prices increased demand, leading to a growing shipment in slow season. However, panel demand began to shrink in 2Q10 because panel price was falling and debt crisis hit Europe market. Brand vendors started to clear away their excessive restocking, prepared in 1Q10, and it caused descending shipment from SI. It is expected that quarter-end in June and advance preparation for back-to-school sales in September will increase shipment from SI by 5-8% MoM for next two month.

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