Market research firm iSuppli has published a new report on the state of the PC monitor industry, and the firm suggests monitor prices will increase in the near future. According to iSuppli, manufacturers of LCD panels have enjoyed record profit margins over the past six months. Those high margins are reportedly due to supply shortages and price increases resulting from factors like strong demand and heated competition in the monitor market. Meanwhile, iSuppli says, monitor vendors are struggling with ever-thinner margins because of said competition.
The situation is beginning to change, however. The research firm explains that while panel makers intend to push prices further up in October, monitor demand from end users is decreasing and inventories are piling up. iSuppli therefore expects monitor vendors to attempt to stay afloat by increasing their profit margins, which will mean price hikes for end users. "That will result in a market slowdown, a return to oversupply, and a long period of adjustment during which panel pricing drops and overpriced inventories clear," the firm predicts.