Global Tablet PC Panel Shipments Recover after Three Straight Months of Declines
Low-Priced Private-Label Brands Continue to Dominate the Tablet PC Market
Santa Clara, California, September 25, 2013—After three consecutive months of shipment declines in Q2’13, global LCD tablet PC panel shipments recovered in July. According to the NPD DisplaySearch Monthly Tablet PC Panel Shipment Value Chain Report, 23 million tablet PC panels were shipped, an 8% increase over June. This growth was primarily driven by 7” panels, which comprised almost half (49%) of all shipments. Low-priced white-box brands accounted for 59% of 7” panels and 43% of all tablet PC panel shipments in July.
The rise of private-label white-box tablet PCs has resulted in some well-known tablet PC brands lowering their prices. For example, Microsoft cut its 10.6” Surface to $199 and the Google Nexus 7 II was discounted 20%. Name-brand tablet PC makers also plan to promote several new models in 2H’13 for the holidays.
“It’s been increasingly challenging for Apple, Samsung, and other name brands to gain greater market share because low-priced private-label brands continue to dominate the tablet PC market,” said Deborah Yang, Research Director of Monitor and TV for NPD DisplaySearch. “Even so, white-box tablet PC players are now facing inventory supply chain issues that have plagued the industry in recent months, which could hamper their future growth.”
Apple is still the largest single consumer of tablet PC panels, with a 24% share in July, followed by Samsung at 18%. At the same time, Lenovo and Google’s panel demand surged, accounting for 5% and 4% of the market, respectively. “Lenovo and Google are becoming increasingly important clients for panel makers,” Yang noted.
Figure 1: Top Brands’ Received Panel Shipments (in thousands)
Source: NPD DisplaySearch Monthly Tablet PC Panel Shipment & Value Chain Report
The rise of white-box brands contributed to the leadership of Chinese panel maker BOE, which made up nearly 30% of the worldwide tablet PC panel shipments in July; however, inventories of white-box tablet PC makers could adversely affect BOE shipments in the coming months. By comparison, Korean LCD panel manufacturers LG Display and Samsung Display are likely to gain share in 2H’13 because they are increasing their shipment targets based on growing demand from name-brand clients.
“While one can argue that the popularity of white-box tablet PCs might be short-lived, they could also conceivably penetrate not only emerging markets, but also more developed ones,” Yang noted. “In response to the overall slowing growth in the tablet PC market, eroding prices, and over-built inventory issues, supply-chain management and risk assessment are proving to be a common challenge for all industry participants.”
