Worldwide top ten SIs rose by 1.5% MoM in October

According to the latest survey by WitsView, shipments from the global top ten SIs continued the momentum of September, and rose by 1.5% MoM to 14.06M units in October, which mainly attributed to the following: under the expectation of LCD monitor panel prices hitting the bottom, the loss risk from panel price decline went away. Thus, brand vendors were aggressive in strategically restocking for the 4Q10 demand in Europe and the US. Additionally, since the demand in Europe gradually rebounded plus a better sales performance in the emerging markets, the product pull-in among brand vendors was strengthened. Looking into the shipments in 4Q10, brand vendors will turn aggressive in inventory replenishment under the expectation of a gradual LCD monitor panel price increase. In addition, since the next Chinese New Year falls in the beginning of February 2011, part of the inventory replenishment for the demand in that period has to be moved forward to December 2010. Hence, WitsView estimates that shipments from the global top ten SIs will potentially grow by 5~8% QoQ in 4Q10.

 

Among the individual vendors, Compal’s shipments increased by 17.3% MoM because the orders from its Japan customers gradually stableilized, and the shipment base was relatively low in September. LGE restocked for the 4Q10 demand in October, coupled by the current outstanding sales performance in Europe and the emerging markets, its shipments rose by 9.7% MoM. For TPV, although the procurement ratio of its US, China, and Taiwan customers went downward in October, TPV’s shipments still grew by 2.2% MoM, thanks to the strong shipment momentum from its own brand. On the contrary, Tatung was currently undergoing the conversion from older to newer models, therefore, its shipments were impacted, falling by 7.5% MoM.

 

     Worldwide top 10 SI shipment by unit in Oct. 2010

 

Shipment Unit: K pcs

Source: WitsView, 2010/11

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