[News] No Improvement in Demand, TV Panel Faces Price Pressure Starting in October

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TrendForce released panel price forecasts for early September, with Eric Chiou, Senior Research Vice President at TrendForce, noting that TV panel prices have been on the rise since February. However, despite the price uptrend, end-demand remains subdued. Coupled with the overall unfavorable economic conditions, signs of stagnant prices are emerging in September for TVs below 50 inches.

Chiou pointed out that if the outlook for the fourth quarter is not optimistic, we could be entering the peak season’s final stages. Brands are facing rising costs and limited promotional space, leading to a conservative approach in preparations for China’s Double 11 and Black Friday sales events in Europe and the US. Overall, 65-inch to 75-inch TV panels have a chance to increase by $3, but price pressures are expected to kick in for panels from October to December.

As the traditional TV market enters the off-season, the key factor will be the extent of price reductions and the profit margins for sellers.

Regarding IT panels, monitor panels are the least profitable among the three major applications. The price increases in the second quarter were already somewhat reluctant, with only low-end IT panels showing upward potential while high-end panels struggled to rise significantly. Overall, IT panels are facing stagnation in price increases and supply chain disruptions, with expectations of greater price pressure from the fourth quarter to the first quarter of the next year.

In the monitor panel segment, visibility for business laptops is not high, and brand manufacturers are expected to adjust panel procurement in the fourth quarter. Second-tier laptop manufacturers are likely to engage in price wars, facing significant pricing pressure. The panel industry conditions in the third quarter of this year were better than in the second quarter, but demand for panels in the fourth quarter may not match the third quarter’s performance.