Despite the still weak demand in the global notebook PC market, panel vendors do not have plans to reduce shipments this year, thereby raising concerns over excessive supplies and price competition, according to MIC (Market Intelligence & Consulting Insitute), a Taipei-based ICT research institute.
By a year-on-year comparison, the decline in panels and in notebook PC sets seems to be close. Based on major vendors' shipment plans for 2015, notebook PC panels to be shipped this year will total 191.8 million units, down 0.3% year-on-year. On the other hand, notebook PC sets to be shipped this year are expected to reach 170.5 million units, down 0.9% year-on-year.
However, by quantities, the favorable value of panel-to-set ratio is around 105 to 100, meaning that there were nearly 5% more notebook PC panels than sets shipped in a year. The ratio fell below this value in 2013, but swelled to 112 to 100 in 2014. The impact of excessive supply in 2014 is expected to ripple through the industry and slow down panel shipments in 2015.
"Despite that, panel vendors have yet to cut back planned notebook PC panel production for this year," said Brian Chen, senior industry analyst with MIC. "If they stick to the original shipment plans, the panel-to-set ratio is projected to rise to 113 to 100 in 2015, leading to a significant increase in inventory and undermining the prices."
Worldwide Notebook PC Panel Shipments vs. Notebook PC Set Shipments, 2013 - 2015
Source: MIC, April 2015
Without further incentives to stimulate notebook PC demand, panel vendors are anticipated to adjust their original shipment plans after the first quarter of 2015.
To see more about this report, please visit: Important Factors Underlying Global Notebook PC Panel Shipments in 2015
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Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english