TV panel shipments down QoQ

In terms of application categories, the distribution demands for the holidays in China have supported part of momentum of TV panel shipment. However, inventory issues in Europe and U.S. markets have affected the procurement strength, leading to QoQ regression of TV panel shipment by 0.1 percent. The shipment of monitor panel has been affected by inventory control among downstream brands, resulting in a QoQ decline of seven percent.

Source: WitsView, Units: K pieces.

Affected by tablets and weak demand in Europe and U.S. markets, the stock preparation activities among downstream OEM makers in 3Q have been weak in notebook (NB) market with a QoQ growth of 1.6 percent for NB panel shipment. Overall, tablet panel shipment has been driven by the procurement in Kindle Fire supply chain leading to a QoQ growth of 24 percent. With tablet specifications gradually moving toward HD development, the actual demand of netbook market has been gradually reflected by the shipment performance of netbook panel with a QoQ regression of 24.1 percent.

WitsView research manager Jian-An Chen said that by comparing the shipment performance of LCD TV panel (which is the most crucial application affecting the digestion of panel production capacity) to the past, it can be found that there is actually a YoY regression of 8.4 percent in 3Q11. From 2006-2010, incremental YoY growths of panel shipment can be found in every quarter of every year (except for 4Q08 under the impact of financial tsunami).

This year, the overall market that was affected by debt crisis in Europe and U.S., high unemployment rate and high inflation has in turn caused the downstream TV brands and channels to adopt tighter inventory control.锟紸s a result, most of the makers were digesting the finished goods and panel inventories purchased panel from last year. Downstream brands have been shying away from aggressive procurement due to falling panel price, leading to QoQ and YoY regressions of TV panel shipment in 3Q11. The previous incremental TV panel shipment growth did not occur in 2Q and 3Q. With pessimistic 4Q forecast on TV panel demand, WitsView projects a first-ever annual regression for TV panel shipment for the year with a forecasted 1-3 percent.