Demand for notebook panels in the third quarter of 2020 will remain robust having seen strong orders during the second quarter supporting pandemic-induced remote work and study, according to industry sources.
Most panel makers are more positive for the notebook sector, expecting notebook panel demand to persist in the third quarter as demand in the consumer market is likely to resume momentum in light of the easing of lockdown measures, and notebook brands will shift their focus back to the consumer segment from the previous targets in commercial and government sectors, the sources said.
Robust notebook sales during the 618 shopping festival in China will also help prompt notebook vendors to replenish their inventory for notebook panels, the sources said.
The Japanese government's decision to accelerate the implementation of its GIGA School project, which aims to give each of its elementary and junior high school students one notebook by year-end 2020 - instead of its previous deadline set at year-end 2023 - will substantially push up demand for notebook panels through second-half 2020, said the sources.
Given that the number of students in Japan's elementary and junior high schools totals about 9.5 million, the government's purchasing plans, coupled with local replacement demand, could result in shipments of over 10 million notebooks in Japan in a short period of time, higher than the 9.73 million units sold in the country for the entire 2019.
Prices for TN-based notebook panels for entry-level Chromebook models are expected to edge up US$0.2 on average in July, after gaining US$0.1 in June, and most market observers expect the price increases will widen in the third quarter.
On the other hand, panel demand for commercial-use monitors as well as those for household entertainment is poised for a decline in the third quarter as compared to a quarter earlier, which is likely to push down monitor panel prices starting August, albeit at a low range, said the sources.
Article translated by Steve Shen
