Global large-sized panel shipments rose by 8.4% QoQ to 161 million units in 2Q10

by WitsView on Jul.20 2010

Overall Panel Shipment Review for 2Q10

Extending the growing momentum from 1Q10, global large-sized TFT-LCD shipment increased by 8.4% QoQ to a record high 161M in 2Q10 while its shipment rose by 30.2% YoY. The main attributions of the shipment growth are as follows: first of all, the primary strategies of downstream clients were to restock in preparation under the expectation of a supply-demand imbalance in 3Q10; moreover, in order to prevent the increase of procurement cost from panel prices rebound, the declining panel prices from April was also the factor which led to downstream clients’ aggressive restocking; finally, even though panel prices were sliding, there was still a certain price gap with the total cost of panel makers. While there was still room for profits, panel makers remained aggressive for panel supplies which increased the panel shipment in 2Q10 tremendously.

Of three individual applications: firstly, in order to lower shipment cost and control the inventory at quarter-end, downstream clients increased the sea shipping ratio in notebooks. Thus, shipment of notebook panels, amid early restocking in 2Q10, jumped by 16.6% QoQ. Secondly, LCD TV panel shipment grew by 10.5% QoQ because the new models of LCD TV were launched to the market since 2Q10. Yet, as panel makers’ degree of integration in the LED supply chain is varied, the supply of LED TV panels could not completely meet downstream clients’ demand. Thirdly, affected by the relatively high inventory among downstream clients, monitor panel shipment only posted a slight increase by 1.7% while netbook panel shipment rose slightly by 1% due to the weakening end-market demand.

Table 1: TFT-LCD Panel Shipment in 2Q10 (K units)

TV panel shipment

Global LCD TV panel shipment rose by 10.5% QoQ to 49.86M, shipment growth was more than that of the same time last year by 48.5%. The launches of new models stimulated the shipment growth, coupled by brand vendors continuously placed emphasis on LED TV models; hence, LED TV panel demand was on the rise. Amid shortages in LED related components, LED TV panel supply remained tight. In sizewise, shipment ratio of <32” models rose by 0.9%. As a result, despite the global economic is under its gradual recovery, demand for small-sized and entry-level models still remained strong. Of which, <26" shipment ratio increased by 1.4% to 14.3% while 32” grew by 0.4 to 42%.

Monitor panel shipment

Global LCD monitor panel shipment increased by 1.7% QoQ to 54.43M in 2Q10 while its shipment rose by 9.3% YoY. Of individual shipment ratios, the penetration rate of 16:9 models continued to rise, increasing by 4.1% QoQ to 60.5% while shipment of >20" models grew by 3.1% to 44.8%. On the other hand, shipment ratios of 4:3 models, including 17” and 19”, declined by 2.4% and 1.5% respectively due to the decline in supply and the relatively high prices. Size-wise, shipment ratios of 21.5"/21.6"W, 20"W and 23"W posted the largest increase by 2.5%, 0.8% and 0.8% individually.

Notebook panel shipment

Global notebook and netbook panel shipment in 2Q10 grew by 16.6% and 1% QoQ to 46.86M and 10.61M respectively while their shipment increased by 49.9% and 9.1% YoY individually. Limited by the specification and performance, the growth in netbook shipment was not as much as it was. Furthermore, the rising Tablet PC may erode some netbook market share which weakened netbook panel demand. In sizewise, in overall NB shipment, shipment ratios of 10.x"W decreased by 2.4%.

Since clients increased the sea shipping ratios in notebook products, panel demand, recording a 16.6% increase QoQ, began to increase in the preparation of back-to-school demand in 3Q10. Among which, shipment of 16:9 models grew by 7.8% QoQ to 69.8%. Size-wise, shipment ratios of mainstream specifications 15.6"W and 14.0"W increased by 1.9% and 4.6% to 36.6% and 20.9% respectively. Relatively, shipment ratios of 16:10 models including 15.4"W, 14.1"W dropped by 2.3% and 2.9% to 2.3% and 4.2% individually.

Regional TFT-LCD Panel Shipment

Of regional large-sized TFT-LCD panel shipment in 2Q10, the market share of Korea panel makers declined by 1.4% because shipment of Taiwan and China panel makers increased. First of all, China panel makers continued its shipment momentum in monitor and notebook panels, rising by 2.7% and 0.9% respectively in market share. China’s overall market share of TFT-LCD panel rose by 0.9% to 5.4%. Moreover, shipment of TV and notebook panels from Taiwan panel makers increase by 3.7% and 0.4% individually while the overall market share rose by 0.4% to 44.4%. Relatively, among Korea panel makers, only netbook panel market share increased by 1.9% whereas notebook, monitor and TV panel market share decreased by 1.3%, 1.4% and 3.5% respectively. Due to the continuous ramp-up of G10 capacity from Sharp, TV panel shipment posted a moderate increase. On the other hand, affected by the relatively larger growth in Taiwan TV shipment, Sharp’s market share dropped by 0.2%.

Table 2: Regional TFT-LCD Panel Shipment (unit base)

Panel ASP

2Q10 Panel ASP by Unit, monitor and LCD TV panel ASP declined by 1.3% and 2.7% individually QoQ while notebook panel ASP recorded a slight increase by 0.5% to $59. The overall ASP posted a moderate decrease by 1.1% to $122. As for panel ASP by areas, ASP of each square meter declined by 1.5%, from $713 in 1Q10 to $702 in 2Q10.

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