Suppliers report that China's retaliatory tariffs on American goods will significantly impact total system costs, with monitor prices potentially increasing by 5%. The US market, being one of the largest consumers of monitors globally, faces particular challenges due to the low-margin nature of these products. The tariffs not only raise costs but also affect brand confidence in end-market sales, potentially leading major brands to adopt more conservative shipment targets for 2025.
Shifting competitive landscape
Competition among monitor brands has intensified in recent years, with rapid price declines weakening second-tier brands' bargaining power. Under the current administration's aggressive tariff policies and growing supply chain diversification, first-tier brands are positioned to benefit more from their superior capacity selection capabilities. Meanwhile, second-tier brands, hampered by limited negotiating power, may face higher prices to secure adequate production capacity.
Panel manufacturing trends
Monitor panel demand shows an upward trend in the short term, driven by manufacturers' controlled output and healthy inventory levels. The segment maintains robust demand even during off-peak seasons, partly influenced by previous increases in LCD television panel prices. As monitors and television panels share production capacity, manufacturers tend to prioritize television panels for better profit margins, further constraining monitor panel availability and encouraging brands to increase their stockpiling efforts.
Market outlook and brand responses
Panel demand began increasing in late 2024 and has continued through the first quarter of 2025. Monthly demand is strengthening progressively, with first-quarter 2025 shipments expected to show modest growth compared to the previous quarter, leading to slight price increases for some monitor panels. Major brands including Dell, HP, and Samsung Electronics are actively building their panel and system inventories to buffer against increased US tariffs.
The market anticipates an overall demand increase of approximately 2 million to 3 million units. Future developments will largely depend on how brands adjust their procurement strategies in response to the evolving geopolitical landscape.
