Laptop panel shipments are expected to drop by 15% compared to last year. Reduced demand for laptops and parts supply delay from lockdown in China are main factors for this phenomenon.
According to a market research company, TrendForce, this April’s laptop panel shipments were 17.5 million units, which is a 21.5% decrease compared to last April. This is the record low since the outbreak of COVID-19. Adjustments in laptop inventory and the lockdown in China contributed to the decrease in shipments.
The downward trend in shipments is expected to continue. TrendForce estimated that laptop panel shipments this year will reach 240 million units, a decrease of 14.9% from the previous year.
TrendForce identified factors for decrease in shipments as lower demand for laptops and disruptions in the operation of parts factories. In the midst of external risks such as inflation and the Ukraine war, laptop sales in the first quarter of this year were 55.6 million units, which is a 4.5% decrease compared to last first quarter. Panel purchases from laptop manufacturers also decreased.
Low demand for laptops led to inventory saturation. 8 to 12 weeks of panel inventories were accumulated at laptop manufacturers as of April. Inventory is usually accumulated 6-8 weeks, which means that the current inventory has increased by about half.
Laptop manufacturers have been trying to secure panels for the past two years; however, they are in a situation where they have to adjust their panel orders to exhaust their inventory. There are many laptops stranded in sea and port containers due to logistics delays.
Overall panel production decreased due to the shutdown of parts factories and delays in supply and demand. TrendForce also noted a possibility of further downgrading shipments.
TrendForce said, “The decline in demand for laptop panels will continue until the third quarter. The key to change the situation in the fourth quarter depends on whether laptop inventory is exhausted.”
By Staff Reporter Yoonseop Song (sys@etnews.com)