Shipments of LCD panels for notebooks dropped 23 percent in July year-on-year, according to new data from IHS. Eight out of the nine leading PC vendors cut their LCD shipments and total shipments were just 1.49 million units, down from 19.3 million in July 2012. Worse, shipments were down 18 percent sequentially.
The sharp drop can be in part attributed to seasonal trends, but there were a few other factors as well. Demand for new Haswell-based deigns remains soft and the fact that many people are still waiting for Windows 8.1 did not help, either. All this resulted in some inventory problems.
“Notebook brands during the third quarter typically increase their purchases of LCD panels as they prepare to launch new mobile PC models for the second half of the year,” said Ricky Park, senior manager for large-area displays at IHS. “However, many key brands this year have accumulated large panel inventory surpluses because of weak sales in the first half. This has caused them to reduce purchases in July, leading to major declines in notebook PC panel market shipments both on a sequential and an annual basis.”
Many notebook makers are still sitting on heaps of old displays and they are clearly having a hard time getting rid of them. Acer’s panel orders dropped 53 percent in June, Toshiba was down 43 percent and even mighty Lenovo experienced a 35 percent drop. It did not get any better in July.
IHS expects to see some positive figures in August, as the market should return to sequential growth, but on-year figures won’t look good.