Notebook Panel Shipments in October Dropped to a Decade Low for That Month and Will Remain in a Slump in 4Q22
TrendForce's latest research finds that shipments of display panels used in notebook computers (NB panels) came to 13.5 million pieces (pcs) in this October, showing a MoM drop of 16.1% and a YoY drop of 45.0%. Based on TrendForce's tracking of NB panel shipments, this figure is a 10-year low for the month of October. Moving into 4Q22, TrendForce expects NB panel shipments to remain in a slump because of uncertainties in the global economy and inventory adjustments that are taking place across the entire supply chain. Fourth-quarter shipment figure is now estimated around 41.7 million pcs, reflecting a QoQ drop of 10.8% and a YoY drop of 45.9%.
TrendForce points out that from a historical perspective, this latest decline in NB panel shipments is part of the wider, multi-year cycle for global manufacturing. The cycle first begins with strong demand causing shortages and price hikes. Then, supply outpaces demand, thus leading to falling prices and inventory corrections. Looking back to 2020 when the COVID-19 pandemic was at its height, the surging demand for notebook computers (NBs) caused a panel shortage. Then, even as more panel supply was released, NB brands continued to stock up due to worries about potential shortages of the key components. They allowed their panel inventories to keep climbing. Fast-forward to the recent period, the pandemic has eased, so the supply situation has improved as well. Furthermore, the demand and windfall associated with the effects of the pandemic have also subsided. What follows now is a series of large inventory corrections in the panel market, the kind of which is rarely seen on record in terms of the overall scale.
TrendForce points out that from a historical perspective, this latest decline in NB panel shipments is part of the wider, multi-year cycle for global manufacturing. The cycle first begins with strong demand causing shortages and price hikes. Then, supply outpaces demand, thus leading to falling prices and inventory corrections. Looking back to 2020 when the COVID-19 pandemic was at its height, the surging demand for notebook computers (NBs) caused a panel shortage. Then, even as more panel supply was released, NB brands continued to stock up due to worries about potential shortages of the key components. They allowed their panel inventories to keep climbing. Fast-forward to the recent period, the pandemic has eased, so the supply situation has improved as well. Furthermore, the demand and windfall associated with the effects of the pandemic have also subsided. What follows now is a series of large inventory corrections in the panel market, the kind of which is rarely seen on record in terms of the overall scale.