TrendForce: Major Brands' Q3 Procurement Demand Up 15% QoQ, August TV Panel Prices Drop by $1

Research firm TrendForce released its late August panel price forecast. The TV market demand remains strong, with major brands' Q3 procurement demand estimated to increase by approximately 15% compared to Q2. This has led to signs of a narrowing decline in TV panel prices, while monitor and notebook panel demand is expected to remain stable.

TrendForce stated that TV brands aim to boost shipments during the year-end peak season to achieve annual targets. The increase in demand from Q2 to Q3 is mainly due to brand customers adjusting their procurement pace to obtain better panel prices as a bargaining chip for negotiating future orders with panel manufacturers.

After adjustments from the end of Q2 to the beginning of Q3, TV panel demand has started to gradually recover. Additionally, with ongoing shortages and cost pressures in upstream panel components, TrendForce estimates that TV panel prices are showing signs of a narrowing decline. Currently, observing the price trend for August, it is estimated that 32-inch to 75-inch TV panels will drop by $1.

For monitor panels, TrendForce noted that demand has started to weaken compared to the first half of the year. However, with the current high costs and shortages of upstream components, panel manufacturers are unwilling to easily make concessions on panel prices. Most brands understand the pressures faced by panel manufacturers and, therefore, have not strongly demanded price reductions. Both buyers and sellers currently tend to maintain stable prices, so the forecast for August monitor panel prices is expected to remain stable.

For notebook panels, TrendForce pointed out that demand in August remains at a relatively low level. Major brands' Q3 procurement demand is estimated to decrease by 15-20% compared to Q2, which will inevitably put pressure on panel manufacturers' shipments.

However, due to ongoing component cost increases and shortages, panel manufacturers have not made significant adjustments to their production pace to address potential continuous cost pressures. Currently, observing the price trend for August, under the pressure of rising component costs, panel manufacturers are maintaining stable prices, and brand customers are not aggressively demanding price reductions. Overall, notebook panel prices in August are expected to remain stable.