2022H2 LCD display demand continues to be weak
TrendForce released the latest survey report, showing that monitor shipments in the first half of 2022 reached 72.3 million units, the same as the same period in 2021. During the period, some orders in the fourth quarter of 2021 were delayed to the first quarter of 2022 due to logistics and transportation problems.
Some brands are optimistic about the prospects for 2022 and have also launched more aggressive marketing activities in the first quarter of 2022, which has stimulated sales to a certain extent. Although in the second quarter, as geopolitical conflicts intensified, inflation rose, and weaker demand in the consumer market affected sales to a certain extent, the positive business model made up for the gap in some markets.
Looking forward to the display market trend in the second half of 2022, TrendForce said that many orders have been digested in the second quarter. Due to the decrease in the number of new orders, the overall business demand momentum is not as good as in the first half of the year. The current consumption pattern is affected by rising inflation and sluggish market demand. Shipments in the third and fourth quarters of 2022 are expected to decline by 5.4% and 2.4% quarter-on-quarter, while the proportion of shipments in the first half and second half of 2022 will also drop to about 51.7 to 48.3. The annual shipment is about 140 million units.
The current global container shortage and port congestion have eased, and the time it takes to transport LCD monitors from China to the United States or Europe is two to three weeks shorter than in the first quarter of 2022. In addition, as the demand in the entire market weakens, the inventory of brand manufacturers soars. The fastest way is to reduce the purchase of front-end panels, components, and foundries, and at the same time stimulate consumption through active promotions. Panels and foundries are likely to be hit in the second half of the year due to brand manufacturers’ inventory strategy adjustments.
