Top 10 monitor brand vendors’ shipments fell by 10.4% MoM in December

by WitsView on Jan.24 2011

According to WitsView’s top 10 monitor brand shipment survey for Dec10, shipments fell by 10.4% MoM to 10.96 million units. Although some brand vendors will be able to secure abundant orders from the commercial market and government-backed bidding projects, the brand shipments were still impacted by a variety of factors in Dec10, which are summarized as follows: (1) In response to the likely labor shortage that will be triggered by the upcoming Chinese Lunar New Year holidays, retailers had already started to pull-in inventory in Nov10. (2) As December marked the financial year-end for most brand vendors, for companies who mostly relied on their in-house production needed to adjust their inventory and shipments in view of the year-end accounting pressure. (3) Demand in the consumer market was weak.

In terms of the performance of the respective brand vendors, thanks to the strong orders from the commercial market, Dell and HP saw their shipments increase respectively by 6.3% and 5.3%. Meanwhile, the successful bidding by Lenovo for China’s government-backed projects boosted its monthly shipments by 4.8%. By contrast, BenQ’s shipments fell by 34.8% MoM. The drop was attributed to the completion of the inventory pull-in by retailers, as BenQ’s sales centered mainly on the European market, where the hot selling period was during November and December. For AOC, the earlier inventory pull-in in Nov10 by Chinese retailers in preparation for Dec10, resulted in its shipments to slip by 24.2% MoM. Finally, due to the year-end accounting and inventory adjustment pressure, the monitor shipments of LGD and Samsung fell respectively by 23.8% and 20.9% MoM.

In general, as annual budgets needed to be digested in the commercial markets in light of the financial year-end, brand makers who enjoyed a stronger presence in this segment, mostly saw brisk shipment increases. Due to the varying shipment performance, some big changes were seen in the ranking. For example, in Dec10, Dell surpassed Samsung as the leader with the highest shipments. Meanwhile, HP’s shipments surpassed that of LGE, jumping to No. 3. Looking into the first 3 months of 2011, in view of the new business year, retailers are expected to continue their inventory replenishments. Coupled by their inventory pull-in during the first two weeks of Jan11 in preparation for the Chinese Lunar New Year holidays, WitsView predicts shipments to grow by 8~12% MoM in Jan11. By contrast, the shorter working days and expected slower sales in Feb11 will cause shipments to fall by 10~15% MoM. Due to the expected lower base period in Feb11 and launch of new models, shipments will jump by 15~20% MoM in Mar11. However, it should be noted that the deciding factor of whether such a large monthly increase will be seen will depend on whether the previous prepared stock is successfully cleared away in Jan11 and Feb11. Thus, a close eye should be kept on the end market performance.

Worldwide top 10 brand shipment by unit in December 2010

Shipment Unit: K pcs

Source: WitsView, 2011/01

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Top 10 monitor brand vendors’ shipments fell by 10.4% MoM in December

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