According to WitsView’s latest survey on LCD monitors, in August 2010, the global top ten LCD monitor brand vendors’ main strategy was to clear away the inventory which was piled up from 2Q10. In response to the continued decline in IT panel prices, panel procurement and set production volume were revised downward to reduce the loss. Hence, shipments dropped by 1.2% MoM to around 10.58 million units in August 2010, posting a weaker than usual traditional strong seasonality. It is noted that shipments from the global top ten SIs rose by 2.3% MoM to 12.05 million units in August 2010, reversing the downtrend in the past four successive months. Under the expectation that panel prices may slowly hit the bottom, the manufacturers began to prepare for the shipments for quarter-end September.

 

WitsView analyst Linda Lin indicated that brand vendors could merely reduce the inventory level, lower the set cost, and launch price promotions with retailers in 2H10, as the IT demand remained weak. WitsView estimated that shipments from the global top ten brand vendors will grow by 10% MoM in order to reach the quarterly target in September. Yet, they took the wait-and-see attitude before panel prices rebound.