Worldwide top ten SIs rose by 2.3% MoM in August

According to WitsView, 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. At current stage, end-market demand remained weak as well as the high inventory level at channels. It is estimated that the sales performance at year-end hot season may not be as strong as it was in the past few years, leading to brand vendors’ rather conservative attitudes toward demand in worldwide LCD monitor market in 4Q10. Looking into September, under the expectation of continued panel price falls, brand vendors slowed down their product pull-in and postponed the inventory replenishment for 4Q10 to September in order to lower the risk of panel price decline. Thus, the top ten SIs’ shipments will have a larger growth by 6-10% in September, says WitsView. Amid the weak demand in 4Q10, brand vendors will have to launch price promotions to spur demand in order to clear away inventory and achieve the annual shipment targets. If the price promotions stimulate end-market demand successfully, it will drive the shipments from SIs as well.

 

In terms of individual vendors in August 2010, Qisda’s shipments grew by 8.8% MoM, driven by the significant increase in Taiwan clients’ product pull-in for 4Q10 demand. The orders for Black Friday sales from Tatung’s major client HP were mainly shipped out in August, leading to a MoM growth of 8.3% in Tatung’s shipments. On the contrary, Wistron’s shipments were down by 13.4% MoM since its major client Dell’s sales performance and product pull-in were worse than expected. For Jean, about 80%-90% of its clients were small scale firms based in the US and Europe, and they reduced their orders due to the weak market condition in the US and Europe as well as the unclear point for panel price rebound. Thus, Jean’s shipments continued to drop by 5.9% MoM.

 

Worldwide top 10 SI shipment by unit in Aug. 2010

 

Shipment Unit: K pcs

Source: WitsView, 2010/9


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