LCD Monitor Panel shipments Forecast to Drop 11.3% QoQ in 2Q22 with Weak Demand Continuing

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2022/06/30 11:36:03 (permalink)
According to TrendForce research, terminal demand remains weak due to repercussions of the Russian-Ukrainian war, rising inflation, and China's pandemic lockdowns as monitor brands began to reduce purchasing of LCD monitor panels in 2Q22. LCD monitors panel shipments in 2Q22 are estimated at 42.5 million units, down 11.3% QoQ. According to TrendForce analysis, monitor brands set fairly high shipment targets in early 2022. Coupled with the impact of LCD monitor panel shortages in 2021, monitor brands gravitated towards overbuying panels in 1Q22 to prepare for ensuing shipments. Driven by strong demand from monitor brands, shipments of LCD monitor panels reached 47.9 million units in 1Q22, up 20% YoY, the highest level for the period since 2012.

However, due to changes in the international political and economic landscape in February this year, the market for consumer models has cooled and monitor brands have successively revised their LCD monitor shipment targets downward and simultaneously lowered their panel purchase volumes. In the face of interest rate hikes by the world's major central banks and slowing economic growth, companies have also begun exercising caution in terms of capital expenditures, which has slowed demand for business-grade LCD monitors. In the past, inventory issues emerged and the overall market became oversupplied when monitor brands overstocked as consumer and business demand gradually cooled.
In addition, shipping and port congestion gradually eased in 1H22. The LCD monitors that were still in transit and accumulating in ports gradually arrived at distributors, resulting in a sharp rise in distribution inventory. Faced with the dual pressure of high whole LCD monitor and panel inventory, monitor brands were forced to reduce panel purchases in 2H22. Therefore, TrendForce forecasts that LCD monitor panel shipments will continue to decline to 37.8 million units in 3Q22, representing a QoQ decline of 11.2%. In 4Q22, there is a chance shipments will rebound marginally to 38.8 million units due to the sales surge initiated by monitor brands at the end of the year, representing a quarterly increase of 2.8%. Annual shipments are forecast to reach 167 million units, a drop of 3.6% YoY.
Will we as consumers see lower priced monitors as a result?

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    Re: LCD Monitor Panel shipments Forecast to Drop 11.3% QoQ in 2Q22 with Weak Demand Contin 2022/06/30 13:18:31 (permalink)
    Will we as consumers see lower priced monitors as a result?

    I think we will see some pretty smok'in deals/promotions on most computer hardware and electronics in general.  Warehouses are filling up and running out of space plus sitting on inventory kills all working capital which companies desperately need right now.  I sense Q3 and maybe even Q4 of this year to be the best time to score.  Could see some absolute banger deals this year's Black Friday/Cyber Monday (maybe even see GPU deals  whaaaat?)
    There will eventually be a yoyo or whiplash effect where we could see minor shortages on items again as nobody really has a crystal ball as to when consumer spending will pick back up and there are a lot of economic/global variables at play.
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