TV Panel Price Declines Narrow in August Amid Rising Year-End Season Stockpiling Demand

Research firm TrendForce today (5th) released its early-August panel price forecast commentary. TV panels are benefiting from rising year-end season stockpiling demand, with procurement momentum warming up. Prices for sizes from 32 to 75 inches are expected to drop by $1, with the rate of decline beginning to converge. In contrast, monitor and notebook panel prices are forecast to remain stable.

TrendForce indicates that overall TV panel demand momentum is gradually recovering. After completing inventory adjustments at the end of Q2, brand customers have begun increasing stockpiling for year-end season demand. Several major brands aim to boost shipments during the peak season to achieve annual targets and expand market share.

Since major brand customers continue to prioritize lowering panel procurement costs, this was reflected in their procurement adjustments during Q2, which they used as leverage in negotiations with panel manufacturers. After securing behind-the-scenes concessions, they have started gradually increasing procurement momentum in Q3.

From the panel manufacturers’ perspective, with demand momentum warming up in Q3, the room for price concessions at the official level is expected to gradually shrink. Based on current observations of August’s TV panel price trends, a $1 decline for 32- to 75-inch panels is expected, indicating that the rate of decline is beginning to converge.

Regarding monitor panels, TrendForce believes that August demand is expected to slightly increase compared to the previous month. However, overall Q3 demand is still projected to decline by approximately 6% compared to Q2. At the same time, cost pressures from panel-related components remain high. Therefore, while demand is declining, panel manufacturers are unwilling to make significant price concessions.

Brand customers also understand the pressures currently faced by panel manufacturers and have not intensified their demands for further price reductions. Both buyers and sellers are currently leaning toward price stability in their pricing strategies. Therefore, based on current observations, monitor panel prices in August are expected to remain flat.

Notebook panel demand has not shown significant improvement compared to the previous month and remains at a low level. Although brand customers maintain a positive outlook on Q3 end-product shipments, due to relatively aggressive component procurement in the previous quarter and stricter inventory control starting in the second half of the year, there is currently no visible sign of a strong increase in panel procurement.

Nevertheless, even with demand at a low level, panel manufacturers still feel the pressure of persistently high component costs and are unwilling to make further price concessions. Brand customers also recognize the challenges faced by panel manufacturers and are not currently pushing excessively for lower panel prices. Therefore, based on current observations, notebook panel prices in August are also expected to remain flat.