Capacity Demand Shrinks: TV Panel Prices Or New Lows
May 10, 2018
With the gradual disintegration of the production capacity of the domestic panel, in fact, starting from the third quarter of last year, the price of the TV panel has been showing a downward trend, which has continued until 2018. According to the latest research report of the State Optoelectronics Research Center of the State Council, the price of TV panels in the second quarter is expected to continue to fall. The range of size reductions are as follows: 32 inches 20 to 22%, 43 inches 13 to 15%, 49/50 inches 12~ 14%, 55 inches 9-11%, 65 inches 14-16%.
With the departure of Q1 in 2018, BOE, South Korea’s LG Display, AU Optronics, Innolux, and other panel companies have successively announced their financial results for the first quarter of 2018. It can be seen that the revenues and profits of major manufacturers have fallen year-on-year and even suffered losses. When analyzing the quarterly results, all companies mentioned that their poor performance was affected by the “declining panel prices”.
It is understood that with the exception of BOE, the two 8.6-generation plants of Xianyang Rainbow and Chengdu Panda also joined the war in March and May of this year, which is bound to displace the current 8.5-generation mainstream products such as 32, 43, 49 and 55 inches. Demand.
In addition, some analysts said that due to the pending US-China trade war, the market is full of uncertainty, so some brands in the second quarter of the panel procurement strategy became conservative. However, due to the advent of the World Cup and the 618 season next month, panel demand may show some signs of recovery. Whether it can capture the peak period of television sales such as the promotion season and the World Cup may become the key node for TV and panel makers to “return to life”.
