Top 10 monitor brand shipments posted a double-digit decline of 13.9% in Feb10

According to WitsView’s top 10 monitor brand survey, total monitor shipments posted a double-digit decline of 13.9% MoM to 9.995 million units in February 2010. The main reason for the decline, apart from fewer working days due to Chinese New Year (CNY) holiday, was the flattish market demand for LCD monitors; therefore, brand vendors were unable to reach their expected shipment targets. Without significant demand recovery in 2Q10, first-tier brands have implemented various strategies at this stage to compete for market share, such as offering lower prices, or introducing entry-level models to attract buyers from emerging markets. Faced with the intense price war, second- and third-tier brands are bearing the brunt of the impact, while first-tier brands’ market shares will likely expand. As shortages of labor, component, and working days gradually come to an end, coupled with more working days, as well as some shipments from the end of February deferred till March, WitsView estimates that shipments in March will grow by 18%. However, WitsView maintains its conservative stance regarding the demand for 2Q10, predicting that QoQ shipment will either remain flat or dip slightly.

In terms of brand vendors’ respective performances, except for HP, whose shipments maintained, shipments of all other brand vendors declined. Of which, AOC’s shipments declined the most, plunging by 45.8%; this is because AOC has been aggressively restocking since December 2009; hence, after CNY holiday, the previously built-up inventory in channels has to be gradually cleared away. Dell’s shipments decreased sequentially by 23.6% MoM as there were no significant improvements in its orders from the commercial market. Moreover, as demand gradually weakens, second-tier brands are particularly vulnerable to fluctuations in the market – vendors whose shipments declined sharply in February are: BenQ (-18.3%), Philips (-20%), and Viewsonic (-29.7%).

Worldwide top 10 brand shipment by unit in February 2010

Shipment Unit: K pcs

Source: WitsView, 2010/3


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