According to media reports, since mid-to-late August, domestic TV companies have increased the prices of TVs by more than 100 yuan, reversing the previous trend of continuous price declines. This seems to indicate the end of the era of cheap TV.
In the past two to three years, global TV prices have been in a downward channel. In the Chinese TV market, due to the fierce competition among TV companies, the price drop has been quite fierce, and even many TV brands have launched priced below 500 yuan. 32-inch TV, so many consumers get benefits.
The reason for the continuous decline in the price of TV products is that LCD panels have been surplus since the end of 2017, so the price of LCD panels continues to fall. LCD panels account for nearly 60% of the cost of LCD TVs. The price drop of LCD panels has greatly reduced the cost of LCD TVs. Become the main reason for the continued price of LCD TVs.
The oversupply of global LCD panels lies in the capacity expansion of Chinese panel companies. At the end of 2017, China’s largest panel company BOE’s first Gen 10.5 line was put into production. This is also the world’s most advanced LCD panel production line, which has led to a substantial increase in the production capacity of LCD panels. In 2019, China’s second largest panel company TCL Huaxing’s first 11-generation LCD panel production line was put into production, further exacerbating the overcapacity of LCD panels.
As China's two major panel companies have expanded their LCD panel production capacity, South Korean panel companies Samsung and LGD believe that they cannot compete with Chinese panel companies in terms of cost, so they chose to close the LCD panel production line and turn to the development of more advanced technologies such as QLED and OLED. In panel technology, Samsung plans to close all LCD panel production lines by the end of this year.
Due to the impact of the epidemic this year, countries have introduced home isolation measures to control the epidemic, which has promoted TV sales; due to the decline in consumer income, consumers have turned to inexpensive and high-quality LCD TVs instead of more advanced technology QLED and OLED TV, which also promoted the sales of LCD TVs.
Therefore, on the one hand, Korean panel companies have reduced the production capacity of LCD panels, which has reduced the supply. On the other hand, the market demand for LCD panels has increased. Under this trend, the LCD panel market has rapidly changed from oversupply to undersupply, resulting in an increase in LCD panel prices. .
Since June, the global price increase trend of LCD panels has accelerated, and it has been rising for three consecutive months in August. Analysts believe that LCD panel prices will continue to rise. The continuous increase in LCD panel prices has pushed up the cost of LCD TVs and forced TVs. Companies increase the price of LCD TVs.
From the e-commerce platform, we can see that 32-inch LCD TVs of less than 500 yuan are no longer available. Well-known domestic TV brands such as Xiaomi, Skyworth, TCL, etc. have increased the prices of TVs. Small-size TVs have raised prices of more than 100 yuan everywhere. The price of large-size TVs even increased by 1,000 yuan.
LCD panel prices continue to rise, which is a major benefit for China’s two major LCD panel companies BOE and TCL. In the past two years, the continuous decline in LCD panel prices has led to a decline in their performance. Now the continuous increase in LCD panel prices will promote their Performance rose sharply.
Note: the first ofweek
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