According to statistics of the ITIS project - a project initiated by Taiwan's Ministry of Economic Affairs and conducted by Taipei-based MIC - shipment volume of Taiwanese LCD (Liquid Crystal Display) monitor is expected to inch down 1.1% to approximately 27.90 million units in the fourth quarter. Shipment value and ASP (Average Selling Price) are expected to continue sliding in the fourth quarter. Shipment value is expected to reach US$3.73 billion in the fourth quarter, representing a sequential decline of 5.8%. ASP, meanwhile, is projected to drop 4.8% sequentially to around US$133.6. Although panel makers have cut back on production to cope with panel oversupply, the overall economic turmoil worldwide is expected to affect the market. Moreover, both the back-to-school demand in the third quarter and the peak-season demand for consumer products in the second half of the year have not met expectations; even the of advanced procurement by major vendors owing to fewer workdays of the Taiwanese industry in January has not materialized.
Taiwanese LCD monitor shipment volume reached 28.19 million units in the third quarter of 2008, inching down 5.3% in comparison with the previous quarter and dropping 10.6% year-on-year. The phenomenon can be ascribed to the reduction of orders by branded vendors and channel players which sought to clear their inventories, the global economic downturn, and the desktop replacement effect. Moreover, branded vendors' shipment targets have been adjusted downward in the third and fourth quarters, which are traditionally the peak seasons of the year.
In the third quarter of 2008, LCD monitor panel prices saw considerable declines, with August and September both posting 6% - 10% price declines. Panel prices failed to rebound in the fourth quarter so far, with October and November still recording slight declines. Moreover, with the rollout of new-generation panels and oversupply of panels, ASP of LCD monitor dropped 10.8% sequentially from US$157.4 to US$140.4 in the third quarter of 2008. At the same time, shipment value of the Taiwanese LCD monitor industry posted a 15.5% sequential decline, dropping from US$4.68 billion to US$3.96 billion.
As regards product mix, shipment share of 19"W products inched up to 30.4% in the third quarter, securing the leading status of 19"W products among mainstream shipments. The runner-up was 17" standard products, with shipment share slipping from 21.9% in the previous quarter to 18.2% in the third quarter, followed by 22"W products with 15.6%, and then 19" standard products with 10.7%. Meanwhile, widescreen products, including both the 16:10 and 16:9 models, have been rapidly replacing the traditional 4:3 products. With the commencement of the shipment of new-generation widescreen models, third-quarter shipment share of widescreen products rose to 68.1%, growing 4.4% in comparison with the previous quarter.
Looking at the shipment share by destination, the share of mature markets such as Western Europe, North America, and Japan has been continuously sliding. At the same time, share of shipments to emerging markets such as China, Latin America, and Eastern Europe have continued to expand. In the third quarter, shipment share for China topped 20% for the first time. It is projected that in the future demand for value-line products in emerging markets will be an important growth driver for the industry.
More information can be found in the following MIC report: The Taiwanese LCD Monitor Industry, 4Q 2008
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About MIC
Market Intelligence Center, 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
About ITIS
The ITIS (Industry and Technology Intelligence Services) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.