Apple bucks the PC OEM trend and increases demand for LCD panels, claims IHS

Apple bucks the PC OEM trend and increases demand for LCD panels, claims IHS

Summary: While PC OEMs made steep cuts in panel demand, Apple's demand grew by 76 percent during July, buoyed by demand for the MacBook Air.

TOPICS: Hardware, Apple, PCs

Along with graphics cards, display panel shipment is a bellwether for how the PC industry is doing, and when it comes to notebooks, its one of the best ways to judge the temperature of the market.

Analysts at IHS claim that July saw a precipitous drop in LCD panel shipments as eight of the nine leading mobile PC brands reduced their LCD panel purchases. This resulted in a global market shipments decline of 23 percent year-over-year.

In real terms, panel shipments in July totaled 14.9 million units, down from 19.3 million during the same month in 2012, claims a new report by IHS.

Acer, Asus, Dell, HP, Lenovo, Samsung, Sony and Toshiba all cut demand compared to July 2012, with Acer, Lenovo, HP, Dell and Toshiba reducing orders by double-digit percentages.

Acer saw the biggest decline as its orders in July, down 53 percent compared to June. The next biggest drop was at Toshiba, down 43 percent, with Lenovo seeing a 35 percent fall.

Of the top panel buyers only one company increased demand, and that was Apple. According to IHS, the Cupertino company increased panel demand in order to be able to keep up with demand for the MacBook Air.

Apple's demand for panels grew by 76 percent, with 1.8 million units ordered.

"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."

The bad month follows a bad year for the PC industry with worldwide mobile PC shipments estimated to have fallen by 5.1 percent during the second quarter, compared to the first three months of the year

Topics: Hardware, Apple, PCs

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  • Interesting

    I wonder if it is a burst of activity that will level off, or something that will be sustained?
  • What were

    The shippment of panels for the other makers, and what were the orders like for the previous months. The devil is in the details, and just saying one manufacturer increased orders while the rest decreased does not mean much if the other manufactures increased the previous month and Apple cut the previous month.
    • Even still, when 1.8 million panels

      is 176% of what is considered "normal", then we have an issue. This is generally the time of year for MacBook Pro updates, and coupled with the Macbook Air refresh, it could mean little, or nothing at all.
      Troll Hunter J
  • Best

    This is the best you could come up with? This article is utterly pointless without more information present.
  • This could be because of Haswell

    The use of Haswell chips on portable PCs, requires, per Intel, the use of touch screen LCD panels - vs. non touch screen panels. This could be reason for the shortfall.

    Windows 8 should ideally not be sold on non-touch screen devices. You lose a lot of the experience on non-touch screen devices. Also most of the ads, and most of the PCs I see for Windows 8, are now touch based. Also I've seen videos of ordinary people reacting very irritably to Windows 8 on non-touch based PCs, yet these very same people seem very happy with the same OS on touch screen devices.
    P. Douglas