On July 9, after Samsung, the IT giant Dell also announced the news of cutting orders.
According to the Business Times, it is reported that Dell has urgently notified panel manufacturers that since July, orders for monitors and notebook panels have been reduced by 50% in the third quarter, including BOE, LGD, AUO, Innolux, CSOT, Sharp and other manufacturers have been affected by In addition, regardless of the previously signed supply and quantity guarantee agreements, in order to control financial inventories and avoid inventory depreciation losses, Tongtong directly lowered.
Xie Qinyi, director of display research at Omdia, said that Dell is the top three IT brands in the world. The inventory problem has caused Dell to slash orders, which may hit the panel demand in the third quarter, which is not prosperous in the peak season.
The supply chain pointed out that Dell purchased 23 million notebook panels in the first half of this year, but shipped 18 million of the whole machine, and the inventory was obviously too high. 15 million pieces, and inventory is also high. Under the pressure of inventory, so hurry back and cut orders.
Xie Qinyi said that Dell’s annual purchase of notebook panels is about 50 million pieces, ranking third among all brand manufacturers, second only to HP and Lenovo. Its main suppliers are BOE, AUO, LGD, BOE, AUO, LGD, Innolux and Sharp, the order adjustment this time is due to inventory adjustment. Dell’s annual purchase volume of monitor panels is 40 million pieces, the world’s largest, and it accounts for up to 25% of the global monitor market share. The main monitor panel suppliers are Kyoto Fang, LGD, AUO, Innolux and CSOT.
Industry insiders pointed out that the supply chain inventory is high, and the current consumer market demand is weak. Samsung and Dell have successively cut orders, which may lead to other brands to follow suit.
It is understood that LG Electronics has been reducing orders since the second quarter, and the IT giant Hewlett-Packard is also under evaluation, which may make the market situation in the third quarter, which is already not prosperous in the peak season, worse.
Since the third quarter of 2021, LCD panel prices have continued to decline, and some panel prices have been cut in half by the second quarter of 2022. Entering June, TV panel quotations continued to fall, prices would fall below the cash cost in an all-round way, and the pressure of IT panel losses in the third quarter also emerged.
In order to promote the balance of supply and demand and prevent panel prices from continuing to decline, leading domestic panel manufacturers have all released production reduction strategies. The Luotu Technology report pointed out that BOE, TCL Huaxing, and Huike have significantly reduced the amount of mother glass cast since June. Among them, BOE has decreased by about 25%, TCL Huaxing has decreased by about 20%, and Huike has decreased by about 20%.
Previously, Xie Qinyi also pointed out that LGD, Innolux, and AUO have also reduced film production by about 5% to 10%. The global average panel capacity utilization rate will drop by 80% in June, and will drop to 75% in the third quarter. Below, it may hit a low since the 2008 financial crisis.
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