The display panel market has experienced significant challenges in recent times, with upstream panel manufacturers such as Huaco, Huaxing, and BOE planning to reduce production to control capacity, a cruel and difficult survival game has already begun.

Decreased demand, decreased sales volume

In December of the previous year, the demand for display panels reached a new low, resulting in an overall sales volume of monitors in the fourth quarter that fell far below expectations. This decline in demand has put pressure on panel manufacturers to take action to maintain market stability.

Production cuts, capacity control

To address the continuous decline in panel prices and ensure price stability, major screen manufacturers have planned to implement production cuts after the Chinese New Year. The capacity control measures in March-April 2024 are expected to reach a historic low, with the shipment volume of display panels continuing to decrease.

Ultra-low pricing policy, it's gone

The ultra-low pricing policy implemented in the past year will gradually be phased out. Under the guidance of the new pricing strategy for the new year, major upstream panel manufacturers have reached a consensus to restore prices to a reasonable level. They aim to achieve a price recovery for display panels in the first quarter of 2024 through a soft landing approach.

New strategies, for price recovery

To ensure a prosperous start to the market in 2024, screen manufacturers have not only increased the intensity of production cuts but also united firmly to raise the prices of display panels in the first quarter. In January of this year, major screen manufacturers have already confirmed a price increase of $1 for all models. This strategy aims to stabilize prices and create a favorable market environment.

Facing the future, still hopeful

After the Chinese New Year holiday, it is highly likely that the price increases of more than $1 will continue, as screen manufacturers remain committed to maintaining price stability and recovering from the challenges faced in the previous year. The industry is optimistic about the potential for a price recovery and a more balanced market in the coming months.

The display panel market is facing challenges due to decreased demand and sales volume. However, major screen manufacturers are taking proactive measures to ensure a prosperous future, the industry remains hopeful for a positive outlook in the coming months, with the potential for price recovery and improved market conditions.