Monitor production by top PC, monitor brands to hit 12.9 M. in March

January LCD monitor production for top PC and monitor brands, which together account for about 85% of the overall market, was 12.5 million units, the highest level in more than a year, according to DisplaySearch.

Additionally, near-term production build-plans of the show that March could be the highest monthly production of LCD monitors on record, reaching over 12.9 million.

"In today's volatile PC market, OEM and brand production totals are a leading indicators as to what the market may see in the near term, including pricing and supplies," notes Chris Connery, Vice President of Personal Computer Displays at DisplaySearch.

While monthly production rates like these have not been seen since April 2008, prior to the global financial crisis, it is too early to attribute the higher production levels to an increase in end-market demand. "Just because you build it, does not mean that they will come," notes Chris Connery, vice president of personal computer displays at DisplaySearch. "Many other factors need to be considered alongside of actual production to get a true sense of the market."

Other factors might affect the monitor market include: Continued strong demand for 19-24 inch LCD TV panels, which affect the supply of similarly-sized PC displays and can cause pricing for these panels to rise amid shortages. The threat of increased panel pricing has historically caused monitor companies to pull-in or double-book orders to receive allocation prior to price hikes. Such a pull-in of production without increased end-market demand can set the stage for high inventories.

In addition, the research firm said, in China, which has become one of the largest consuming regions for monitors, end-market demand for LCD monitors is not very strong in the first quarter of 2010, but production requests from the major players in the China market are still strong, with many looking to stock up for the Chinese New Year. The growing dominance of notebook PCs, which outpaced desktop PC shipments for the first time in 2009, calls into question where the increased demand for external, larger-size displays is coming from. Surveys show that consumers (those driving the PC trends towards mobile computing) are far less likely to use a monitor with their notebook than a professional user in a work environment.

The use of LCD technology in desktop monitor displays and in all-in-one desktop PCs means this is still one of the top markets for large-area LCDs, iSuppli said.

Source & Copyright: CENS