Key Takeaways
1. Leading monitor manufacturers are increasing their inventory of display panels to prepare for potential tariffs from China, possibly reaching three million units.
2. Monitor prices may rise by around five percent due to increased system costs resulting from tariffs.
3. Second-tier brands face significant pressure, with limited bargaining power and rapidly decreasing prices, while top brands manage tariff effects better.
4. Demand for monitor panels is rising, with first-quarter 2025 shipments expected to exceed those of the previous quarter, despite challenges in securing enough monitor panels.
5. Broader industry trends show companies considering relocating production to Vietnam and Taiwan, though these areas may face their own tariff challenges.
Leading monitor manufacturers are preparing for possible retaliatory tariffs from China on U.S. products by increasing their inventory of display panels, with estimates suggesting they may reach three million units. Experts predict that monitor prices could rise by approximately five percent due to the overall rise in system costs.
Impact on Second-Tier Brands
The brands that are not as well-known are under the most pressure, as they have limited bargaining power in a highly competitive market and are facing rapidly decreasing prices. These companies may find themselves paying more to secure their production capacity, while top brands like Dell, HP, and Samsung Electronics can utilize their greater production capabilities to better manage the effects of the tariffs.
Trends in Panel Demand
Demand for monitor panels has been increasing steadily since late 2024, and shipments for the first quarter of 2025 are expected to surpass those of the previous quarter. This upward trend seems to be holding even during typically slow months, partly due to a spike in LCD TV panel prices earlier. Given that panel manufacturers often focus on producing TV panels (which yield higher profits), securing enough monitor panels is becoming increasingly difficult.
Overall, the market demand may rise by two to three million units, but the direction this takes will depend on how each brand approaches sourcing amid the changing geopolitical landscape. Larger companies are already ramping up both their panel and system inventories to mitigate the impact of higher tariffs from the U.S.
Broader Industry Changes
It’s not only monitor manufacturers that are feeling the effects of these developments. Wider industry trends indicate that companies such as ASRock are considering moving their production to Vietnam and Taiwan. However, these regions come with their own set of challenges, such as potential semiconductor tariffs that could reach up to 100 percent—part of a larger effort to alter global manufacturing dynamics.
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