Market experts predict a decline in prices for monitors by the end of this year due to a decline in demand. DigiTimes Asia notes that demand has also declined for laptop screens, especially for entry-level models.
Image source: LG
According to analysts, demand for LCD displays in the mid- and high-end segments has also dropped somewhat, as OLED screens are gaining popularity in more expensive segments of laptops. The LCD TV segment was also hit by the slowdown in global demand for panels, but China’s trade-in subsidy program boosted sales in the country, helping to stabilize the situation.
The fall in demand for displays has led to a reduction in their production. As noted, panel production in China was reduced in early October. Taiwan’s Innolux said it will adjust its production plan based on demand estimates in the fourth quarter, adjusting its supply accordingly.
Display manufacturers are resorting to a “controlled release for stable pricing” strategy to avoid oversupplying the market, which in turn will lead to even lower prices. And while lower display prices will obviously benefit end-users of monitors, laptops and TVs, the display manufacturing market could be destabilized if manufacturers’ revenues begin to decline. Manufacturers and suppliers want supply and demand to be in balance, as this will ensure pricing stability.