Monthly Production of LCD TVs Rises to Record High, but Mobile PCs Falling

Wed, 12/14/2011 - 3:22am
General Electric

SANTA CLARA, Calif., December 14, 2011 As global LCD TV brands ramp up production for the Q411 holiday period, LCD TV production is nearing a record high. Of the TV brands surveyed by NPD DisplaySearch for its MarketWise - LCD Industry Dynamics report, production reached a record high of 19.8 million units in October, and is expected to maintain that level in November.

Even though production for most global TV brands typically slows down in November, LCD TV production is expected to be sustained as Chinese TV brands, aiming for monthly shipment growth in November and December, prepare for the Chinese New Year holiday. November is estimated to be the highest record with 19.9M units built by the surveyed brands globally. In addition to supply chain pull-in for upcoming holidays, we expect Chinese TV brands to fight for market share to make up for shipment targets missed in the beginning of the year, said Deborah Yang, Research Director for NPD DisplaySearch.

TV demand outlook is turning positive for unit volume in the near term, but the focus is on inexpensive and simple-feature sets. TV brands, including leading global vendors, are planning to carry new TV sizes and low-specification LCD TVs to create business opportunities and drive traffic in 2012. Yang added, Prices for Black Friday may not influence the market very much, but the price points of new emerging sizes together with simple-feature TV sets cannot be overlooked. These are likely to lead to confusion in the product and value proposition.  

Despite strong sell-through results in North America and China, LCD TV brands are cautiously controlling their inventories. For December through February, LCD TV brands are planning to reduce production to prevent overstocking for the slow season in Q112. Global LCD TV production plans of surveyed LCD TV brands will fall to 13.4M in January. LCD TV panel suppliers will need to continuously control their capacity utilization in the coming months, even as panel prices stabilize.

Figure 1: LCD TV Brand Production Forecast (Millions)

Source: NPD DisplaySearch MarketWise - LCD Industry Dynamics

Shortages of hard disk drives (HDDs) caused by the flooding in Thailand are expected to last until Q112, impacting production of notebook PCs and LCD monitors. In particular, NPD DisplaySearch foresees mobile PC brands cutting low-margin mobile PC production (netbook PCs or 15.6 mainstream models). From the beginning of Q212, there is a possibility that mobile PC production volumes could increase significantly as a result of channel refilling and new 2012 model launches, added Yang.

Figure 2: Mobile PC Brand Production Forecast (Millions)

Source: NPD DisplaySearch MarketWise - LCD Industry Dynamics

Monitor brands that have high attach rates to desktop PCs or have higher presence in the China market are being impacted strongly by the HDD shortage and the slowing demand outlook, while stand-alone monitor brands are less affected. However, in the China DIY (PCs built by consumers) market, demand is weakening due to increases in HDD prices.

In addition to LCD TVs, the NPD DisplaySearch MarketWise - LCD Industry Dynamics report tracks mobile PC and desktop monitor applications for large-area TFT LCD panels. The report delivers concise, relevant information for decision-makers who need to quickly understand the entire large-area TFT LCD supply chain. Presented in a dashboard format, the report highlights the status of every aspect of the supply chain, from components to the end-market, covering the ever-changing dynamics of panels, brands, capacity, production, prices and more.

For more information about the report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452 or e-mail or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan or more information.



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