notebook


2021-07-12

Annual Notebook Shipment Likely to Break Records in 2021 at 236 Million Units, with Chromebook Demand Slowing Down in 2H21, Says TrendForce

While the stay-at-home economy generated high demand for notebook computers from distance learning and WFH applications last year, global notebook shipment for 2020 underwent a nearly 26% YoY increase, which represented a significant departure from the cyclical 3% YoY increase/decrease that had historically taken place each year, according to TrendForce’s latest investigations. The uptrend in notebook demand is expected to persist in 2021, during which notebook shipment will likely reach 236 million units, a 15% YoY increase. In particular, thanks to the surging demand for education notebooks, Chromebooks will become the primary growth driver in the notebook market. Regarding the shipment performance of various brands, Samsung and Apple will register the highest growths, with the former having Chromebooks account for nearly 50% of its total notebook shipment this year and the latter continuing to release MacBooks equipped with the M1 chip.

Chromebooks have been accounting for an increasingly high share in the notebook market in recent years, and Chromebook shipment is expected to reach a historical peak this year at 47 million units, a staggering 50% YoY growth. The vast majority (70%) of global Chromebook demand comes from the US, while Japan takes second place with 10%. However, the US education notebook market is gradually saturated with Chromebooks, and the general public has also been returning to physical workplaces and classrooms following the lifting of domestic restrictions. In addition, the Japanese GIGA School program, which equips student with computers and internet access, has notably slowed down its notebook procurement. The global demand for education notebooks will therefore slightly lose momentum in 2H21.

Regarding notebook brands, as Chromebooks occupy a relatively large allocation of notebook shipment by Acer and Samsung, the two companies are likely to bear the brunt of the education market’s downturn. TrendForce therefore believes that the Chromebook market’s growth going forward will mainly depend on regions outside the US as well as non-education applications.

Global demand for notebooks will decelerate in 2H21, with the bulk of the slowdown taking place in 4Q21

It should be pointed out that certain recent rumors claim that the demand for notebooks will decline in 2H21. This decline can be primarily attributed to the fact that notebook brands are increasingly finding Chromebooks’ low margins to be unprofitable, while 11.6-inch panels, which are used in 70% of all Chromebooks, have also skyrocketed in price, and certain semiconductor components are in shortage. In light of these factors, brands are starting to lower the share of Chromebooks in their overall notebook production for 2H21. TrendForce expects consumer demand in Europe and the US to gradually weaken in 3Q21. However, low inventory levels in the channel markets will still generate some upward momentum propelling the notebook market. Hence, quarterly notebook shipment in 3Q21 is expected to remain unchanged compared to 2Q21.

Furthermore, the pandemic has gradually been brought under control in Europe and the US due to increased vaccinations. Therefore, the slowdown of demand in the overall notebook market and in education sector bids will not come into force until 4Q21, during which notebook shipment is expected to reach 58 million units, a 3% QoQ decrease. At the same time, the fact that notebook manufacturers overbooked certain components, which subsequently resulted in additional inventory, will likely have implications in 4Q21 as well. Going forward, although notebook demand will likely slow in 2022, the normalization of the hybrid-work model as well as the recovering demand for business notebooks will provide some upward momentum for annual notebook shipment next year, which will reach 220 million units, a minor downward correction of 6% YoY.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

2021-07-08

With a forecasted double-digit decline in Chromebook shipment next year, is 2021’s stay-at-home peak over for the notebook market?

Although the stay-at-home economy has persisted through 2021, governments in Europe and the US are starting to lift restrictions in light of increased vaccinations. As such, it remains to be seen whether notebook computers will continue to experience strong demand and whether global notebook shipment will change accordingly.

TrendForce indicates that the YoY changes in annual notebook shipment for 2015-2019 remained within 3%, and about 160-165 million units were shipped each year during this period. However, as WFH and distance education became the norm due to the COVID-19 pandemic’s emergence in 2020, demand for notebooks has risen accordingly; global notebook shipment for 2021 is expected to reach 237 million units, a 15% YoY increase.

Nonetheless, TrendForce also believes that the easing of restrictions in Europe and the US in 2H21 will somewhat weaken the pandemic-generated demand for notebooks. While global notebook shipment for 2022 is expected to reach 222 million units, Chromebooks in particular will likely experience a double-digit decline. Shipments of other product categories, namely, business notebooks or consumer notebooks, are expected to decline by nearly 5%.

Chromebooks have been occupying an increasing share of the overall notebook market, from 11% in 2019 to 15% in 2020 and 20% in 2021. Volume-wise, the upward trajectory of Chromebooks has been nothing short of impressive. Chromebook shipment for 2020 reached 31.17 million units, a staggering 87% YoY increase. This momentum is expected to continue into 2021, during which annual Chromebook shipment will likely reach 46.87 million units, thereby becoming an indispensable driver of the global notebook market’s growth.

The US market accounts for the bulk(about 70%)of global Chromebook demand this year. That is why the near saturation of the US education notebook market and the impending return to physical locations for work and study after restrictions have been eased will lead to a slowdown of global education notebook demand.

At the same time, there will likely be a corresponding decline in demand for notebooks used in WFH applications, including business and consumer notebooks. TrendForce, therefore, believes that demand in the notebook market will peak in 2021 and slightly taper off in 2022.

(Cover image source: Lenovo StoryHub

2021-03-31

Despite Cyclical Off-Season, High Demand Results in Historical High for Notebook Panel Shipment in 1Q21, Says TrendForce

The onset of the COVID-19 pandemic in turn generated a high demand for notebook computers. While demand began ramping up in 2Q20, subsequently resulting in a shortage in 3Q20 and 4Q20, the shortage in the notebook market has yet to be resolved even now, according to TrendForce’s latest investigations. The high demand for notebooks is estimated to propel the quarterly shipment of notebook panels to a historical high of 65.3 million units in 1Q21, which is a 3.5% increase QoQ and a 46.5% increase YoY.

With regards to supply and demand, TrendForce believes that the current shortage of notebook panels can primarily be attributed to the soaring market demand for notebooks. In terms of supply, notebook panel shipment underwent YoY increases of more than 20% during each quarter from 2Q20 to 4Q20. At the moment, panel orders from notebook manufacturers still exceed the order fulfillment capacity of panel suppliers by about 30-50%, as panel suppliers are bottlenecked by the shortage of certain semiconductor components, such as DDICs and T-cons.

Given the extremely tight supply of panels relative to demand, notebook panel prices have skyrocketed accordingly. Case in point, quotes for 11.6-inch panels, which are among the mainstream and are widely used for Chromebooks, are now closing in on quotes for 14-inch and 15.6-inch panels. As such, the high profitability of notebook panels have led panel suppliers to set more aggressive shipment targets this year.

In particular, after CEC-Panda sold its Nanjing-based Gen 8.5 fab and Chengdu-based Gen 8.6 fab last year, the company currently possesses a sole remaining Gen 6 fab in Nanjing. While this fab has never manufactured notebook panels in the past, plans for manufacturing 11.6-inch panels are now underway, with mass production expected to start in 2Q21, owing to the extremely high market demand for notebook panels. It should also be pointed out that HKC has been mass producing 11.6-inch panels since February 2021. The company is expected to start mass producing 14-inch panels in 2Q21 and 15.6-inch as well as 13.3-inch panels in 2H21. HKC aims to ship about 10 million notebook panels this year.

TrendForce indicates that the current demand for notebook panels will likely persist through 3Q21. However, as the shortage situation has persisted for more than three quarters since it surfaced in 2Q20, some notebook manufacturers may begin overbooking panel orders due to the expectation of further shortages. Therefore, if the actual market demand were met ahead of expectations, panel suppliers may potentially slow down their panel shipments in 2H21. Even so, the new normal brought about by the pandemic will continue to power the global digital transformation. For instance, in response to the digitization of distance learning, the education sector is expected to generate recurrent demand for Chromebooks. As a result, TrendForce has a positive outlook on the annual shipment volume of notebook panels for 2021, which is expected to reach 249 million units, a 10.5% increase YoY.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Vivie Liu from the Sales Department at vivieliu@trendforce.com

2021-03-09

Prices of Client SSDs for Notebook Computers to Enter Early Uptrend in 2Q21 with 3-8% Increase QoQ, Says TrendForce

Demand for notebook computers is expected to remain strong throughout 2Q21 due to the persisting stay-at-home economy that arose in the wake of the pandemic, according to TrendForce’s latest investigations. In response to the high demand for notebooks, PC OEMs are actively raising a consistent inventory of components, including client SSDs. Nonetheless, client SSDs are now in increasingly tight supply because the preexisting shortage of NAND Flash controllers is now exacerbated by the power outage at Samsung’s Austin-based semiconductor plant. SSD manufacturers are therefore preparing to raise the prices of SSDs. Accordingly, TrendForce has also revised up its forecast of client SSD prices for 2Q21 from “mostly flat” to a 3-8% increase QoQ instead.

As previously mentioned, Samsung’s semiconductor plant in Austin, Texas (here referred as Samsung Austin) was affected operationally by a severe winter storm that blanketed the entire state last month. As a result, production activities at the plant were mostly suspended from mid-February to March 2. TrendForce’s investigation of this incident finds that the plant is starting to recover operationally. Even so, the capacity utilization rate of the whole plant is not expected to return to the level of above 90% until the end of March, and this delay has had a palpable impact on Samsung’s chip production. With regards to product mix, there is no wafer input for NAND Flash at Samsung Austin. Nevertheless, 10% of its production capacity is used to manufacture in-house controller ICs for Samsung’s own branded SSDs. TrendForce’s investigation also finds that most controller ICs made at Samsung Austin are for client SSDs shipped to PC OEMs. In particular, among Samsung’s client SSD offerings, products based on 128L NAND Flash are expected to be directly affected by the incident.

It should be pointed out that, after kicking off mass production of 128L client SSDs in 4Q20, Samsung originally planned to take advantage of the release of Intel’s Tiger Lake CPUs to expand Samsung’s market share of PCIe G4 SSDs through aggressive pricing. After all, its competitors have been slow in ramping up production of PCIe G4 SSDs due to the negative impact of the pandemic and due to the longer-than-expected qualification process from PC OEMs. In light of the shortage of controller ICs, however, all SSD manufacturers are now forced to extend the lead times for their SSD orders, making it difficult for any manufacturer to increase their supply of SSDs and compelling them to in turn raise 2Q21 prices of client SSDs.

On the other hand, the power outage has had an impact on enterprise SSD prices as well, since enterprise SSDs and client SSDs are highly correlated in terms of prices. Furthermore, clients in the data center segment are expected to ramp up their procurement activities for enterprise SSDs in 2Q21 after the previous bearish period, meaning there will likely be successive QoQ increases in the volume of enterprise SSD orders going forward. Enterprise SSD prices are therefore expected to enter an impending upturn, and TrendForce has in turn revised up its forecast of enterprise SSD prices for 2Q21 from a 0-5% decrease QoQ to a 0-5% increase QoQ instead.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

  • Page 1
  • 1 page(s)
  • 4 result(s)