Small, mid-size TV panel prices to bounce back, large-size prices to continue descent | 4K/UltraHD | News | Rapid TV News
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Research from Asian display technology specialist WitsView has revealed that as the continued fall of TV display panel prices goes no further, demand of TV brands will see a gradual return.

Samsung 14 feb 2019The analyst noted that TV brands adopted conservative procurement strategies in 4Q18 with a focus on controlling year-end inventory levels. Diving demands thus caused TV panel prices to slide at speed and accelerated the impairment of financial conditions for panel manufacturers, who, faced with the imbalance between supply and demand, adjusted their product portfolios and utilised proactive quoting strategies as a first remedy.

The research data has found that prices have recently dropped below cash costs for some TV panel sizes, noting that 32-inch TV panel quotes have dropped below US$40. Yet WitsView now believes that after relieving inventory pressures, panel manufacturers have been taking a harder stance on price negotiations for products 50-inches and under to improve profits.

The analyst says due to the strategic reductions of 32-inch production by panel manufacturers, and 49-inch panels being pushed out of competition by the large increase in demand for 50-inch panels, 55-inch panels have been the main avenue for production capacity consumption, increasing endlessly in supply.

Looking forward, WitsView cautioned that with Gen 10.5 lines of BOE and China Star Optoelectronics Technology (CSOT) joining the ranks of 65-inch and 75-inch suppliers, large size panels are feared to remain stuck in an oversupply situation and with the larger the size, the greater the price pressure. It also warned that the likes of CEC-Panda, HKC, CHOT and other second-tier panel manufacturers in China still need to improve their 50-inch customer bases and yield rates. It expects the manufacturers’ supplies to remain tight in the short term.