- The report highlights the underlying causes, including inventory issues, stagnant demand, and shifting industry dynamics.
- It also provides insights into how major players like Intel and Microsoft plan to revamp their strategies for 2024 and beyond.
According to recent findings by Omdia’s Notebook and Tablet Display & OEM Intelligence Service, the global notebook PC panel shipment will reach approximately 188.5 million units in 2023. However, this estimate represents a concerning 13% year-on-year decrease, marking the second consecutive decline since 2021. The primary culprit behind this downturn is the lingering inventory surplus in the first half of 2023, adversely impacting the PC market’s demand dynamics in the post-pandemic era.
While the inventory issue has gradually lessened in the latter half of 2023, the PC market continues to grapple with stagnant demand, posing a significant challenge for industry players. The most pressing concern is the elusive nature of end-market demand, prompting most PC brands to adopt a cautious approach to panel procurement in 2023 to mitigate the risk of inventory buildup. In line with these conservative strategies from PC brands, panel manufacturers are also taking measures to control fabrication facility utilisation rates tightly throughout 2023 to stabilise notebook panel prices.
Linda Lin, Omdia’s Senior Principal Analyst, emphasised the need for conservative product planning in the face of the weak PC market 2023. PC brands conduct internal reviews of their product roadmaps, prioritising profitability, eliminating underperforming products, and minimising new model projects to enhance their financial resilience. Consequently, there is a greater demand for low-cost display specifications than high-end models in 2023. Notably, notebook displays utilising TN (Twisted Nematic) technology, known for their cost-effectiveness and offering resolutions of both 1366×1768 (HD) and 1920×1080 (FHD), are experiencing significant growth despite the prevailing downward trend in PC demand. TN technology maintains a solid 25% share of the notebook panel market in 2023, a modest decrease from the previous year. This persistence can be attributed to the short-term impact of the weak PC market, even as panel makers transition capacity from TN to IPS (In-Plane Switching) technology.
Looking ahead to 2024, major players like Intel, Microsoft and PC brands are exploring strategies to enhance their product specifications and boost revenue. For notebook displays, the 1366×1768 (HD) resolution is anticipated to be phased out gradually in favour of 1920×1080 (FHD) and higher resolutions, utilising both TN and IPS technologies. Additionally, essential notebook display brightness may increase from the current 250 nits to 300 nits, with a growing focus on displays with 16:10 aspect ratios, potentially improving their market share in 2024. Manufacturers are also actively seeking opportunities to bolster profit margins and upgrade their middle to low-end PC segments in the future. These initiatives reflect the industry’s adaptability and commitment to addressing challenges in the ever-evolving PC market landscape.
