Business PC manufacturers cut LCD orders by a fifth

Business PC manufacturers cut LCD orders by a fifth

2013/09/09

Eight of the nine leading mobile PC brands reduced their LCD panel purchases in July, causing global LCD market shipments to decline 18% compared to June and by 23% y-o-y, says IHS

The decline is from 19.3 million units to 14.9 million units.

Acer, Asus, Dell, HP, Lenovo, Samsung, Sony and Toshiba all cut demand compared to July 2012 with Acer, Lenovo, HP, Dell and Toshiba cutting orders by double-digit percentages

Acer posted the biggest decline in orders in July compared to orders in June – down  53%. Toshiba’s orders were down 43%; Dell’s down 36%; Lenovo’s down 35%; HP’s down 20%.

Apple was the only one of the leading manufacturers to raise shipments on y-o-y basis, as it ratcheted up orders to meet MacBook Air demand.

Top players Acer, Lenovo, HP, Dell and Toshiba all slashed their orders by double-digit percentages in July compared to June, causing the sequential decline in panel shipments.

Apple, Asus, Samsung and Sony increased their panel purchases in July compared to June. Apple generated the largest increase, up 76, with 1.8 million units ordered. Apple’s new MacBook Air model launched in July with a 13.3-inch, 2,560 by 1,600-resolution panel.

IHS estimated that total notebook panel purchasing returned to sequential growth in August with a 10  increase. However, the August total still is expected to drop by 23% compared to the same time in 2012.

“Notebook brands during the third quarter typically increase their purchases of LCD panels as they prepare to launch new mobile PC models for the second half of the year,” says Ricky Park of HIS “however, many key brands this year have accumulated large panel inventory surpluses because of weak sales in the first half.”

The drop in July panel orders followed a bad Q2  for the mobile PC market which fell 5%  in Q1 – the first time the industry experienced a sequential decline since the second quarter of 2002.

The mobile PC industry at present is facing tough competition from media tablets, along with a dearth of innovation in mobile PCs.

IHS estimated that total notebook panel purchasing returned to sequential growth in August with a 10% increase. However, the August total still is expected to drop by 23% compared to the same time in 2012.

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