Reduced demand and supply issues stemming from continued lockdowns in China have led to a far smaller production number for laptops during 2022.

Laptop panel shipments are expected to drop by 15 per cent, compared to 2021, according to market research company TrendForce.

April panel shipments were 17.5 million units, marking a 21.5 per cent drop from April 2021. This is the lowest since the pandemic.

This is an indicator of an overall trend.

Laptop sales were down 4.5 per cent year-on-year during the first three months of the year. This led to inventory bloat, with manufacturers having 8-12 weeks of stock during April, compared to the preferred 6.8 weeks.

Panel shipments this year will reach just 240 million units, as opposed to the 274.5 million shipped the previous year. This could be downgraded further.

“The decline in demand for laptop panels will continue until the third quarter,” TrendForce noted.

“The key to change the situation in the fourth quarter depends on whether laptop inventory is exhausted.”