BOE, AUO, Innolux, and LGD have a combined market share of up to 90%, which will help the price of notebook panels to stabilize. This year, notebook panels have become the mainstay of panel manufacturers to stabilize revenue and profit.
Yang Qingxiang, an analyst at TrendForce, pointed out that benefiting from the demand for laptops for work from home and distance teaching, the shipment of laptop panels in the first half of the year was not slow, and the shipment of laptop panels in the second quarter was 53.3 million, compared with the same period last year Growth of 17.7%, compared with the first quarter of this year, an increase of 33.6%, and panel manufacturers are also optimistic that the demand is expected to continue into the third quarter.
The global epidemic situation is expected to gradually slow in the second half of the year, and the ensuing dividends for laptop demand may also subside. However, with the lifting of the ban on terminal markets in various countries, the sales focus of laptop brands will also shift from commercial and public demand to consumer markets. The inventory replenishment demand of the brand channel is expected to extend the market of laptop panels to the third quarter. However, during the post-epidemic period, consumer budget expenditures have decreased, and the sales performance of end products will remain the key to the trend of notebook panels in the fourth quarter. Overall, even though the performance of notebook panel shipments in the first quarter was not satisfactory due to the impact of the epidemic, but benefited from the surge in demand in the second quarter and the market visibility in the third quarter gradually cleared, TrendForce estimates this year's notebook panel Shipment volume is about 188 million pieces, an annual increase of 0.2%.
This year's notebook panel supply layout is not much different from last year. In the first half of the year, the main suppliers are still BOE, AUO, Innolux and LGD, with a total market share of nearly 90%. TrendForce pointed out that the supply of notebook panels is relatively concentrated, new suppliers have less interference in the market, and the demand catalyzed by the epidemic has pushed up the price of notebook panels in the second quarter. It is worth noting that most of the laptops used for education and work at home are equipped with lower-end TN panels, not IPS panels that are more common in the consumer market. The major TN panel suppliers such as BOE, AUO and Innolux also have price strategies. Therefore, the focus is on raising the price of TN products to increase product gross profit.
However, in the long run, the development trend of notebook panels is still dominated by IPS technology. LGD, the main supplier of IPS panels, will end the production of TV panels at its South Korean factory by the end of this year and switch to producing IT products. Therefore, LGD's primary goal is to maintain the market share of IPS panels, followed by price increases. However, as the demand for consumer notebooks gradually heats up, other panel makers are bound to turn positive for the price increase of IPS panels.