Notebook Display Market Faces Challenging Demand Environment

The notebook display panel market is navigating a difficult period of declining demand and ongoing inventory challenges. According to analysis from Omdia, global notebook PC panel shipments are estimated to fall 13% YoY to 188.5 million units in 2023. This follows consecutive years of market contraction after the pandemic boom.

Source: Omdia

In the first half of 2023, excess inventory led brands to curtail new panel procurement. While inventory burdens have partially eased, stagnant end-market demand persists. With little clarity on near-term consumer appetite, notebook OEMs and panel makers alike are taking conservative approaches.

OEMs are reviewing product roadmaps and prioritizing profitability over volume growth. Low-cost display specifications are seeing stronger relative demand than high-end options. For example, share of basic TN technology panels remains resilient at 25% in the notebook market. Panel makers are also tightly controlling fab utilization rates to stabilize pricing amid the demand slowdown. As a result, the transition from TN to higher-end IPS technology has been limited, with IPS share hovering around 72-73%.

Looking ahead, the industry is exploring ways to spur demand through judicious specification upgrades. For instance, phasing out 1366×768 HD panels for baseline 1920×1080 FHD resolution. Boosting minimum brightness from 250 nits to 300 nits is another potential measure. Higher 16:10 aspect ratio adoption could also increase by moving more entry-level notebooks to IPS. Overall, strategic upgrades beyond bottom-barrel configurations may help reinvigorate middle and low-end price bands.