Top 10 monitor SIs’ shipments slipped by 4.8% MoM in December

According to WitsView’s survey, the monthly SI shipments from the global top ten SIs reached 13.8 million units in Dec10, down by 4.8% from Nov10. Despite the continued inventory restocking in Dec10 by US brand companies, due to the expected labor shortfall that will be created by the Chinese Lunar New Year holidays, preparations had already begun in Nov10. Coupled by the lack of a strong demand in the downstream monitor market, only a slight increase was seen in the overall inventory pull-in momentum. Meanwhile, as December marked the fiscal year-end for most brand vendors, the accounting pressure led to some makers sharply adjusting downwards their ordering. The aforementioned factors were the key reasons behind the downward trend in the SI shipments. Looking into Jan11 and Feb11, WitsView expects the brand vendors to resume their inventory preparations in the start to the year. For Jan11, shipments are projected to rise by 6~10% MoM. As for Feb11, with the number of working days totaling a mere two weeks, due to the Chinese Lunar New Year holidays, shipments are expected to slump by 20~25% MoM.  

 

In terms of the respective performance of the SIs during Dec10, the evident monthly 15.4% increase by Compal was attributed to an increase of orders by its Japanese clients, which were placed in response to the New Year’s demand. By contrast, given the in-house capacity of Samsung and LGE, the year-end annual inventory accounting resulted in their shipments to fall respectively by 24.7% and 24.3%. As for BOEVT, the sharp 17.4% decline over last month was caused by the yet to be finalized orders in the new business year. Finally, GreatWall experienced a 10% MoM decrease, as their inventory pull-in was dragged down by an inventory build-up at the retailer’s end. 

 

Worldwide top 10 SI shipment by unit in Dec. 2010

 

Shipment Unit: K pcs

Source: WitsView, 2011/01

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