Large-sized panel TV prices projected to continue sharp rise | 4K/UltraHD | News | Rapid TV News
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Research from display technology specialist TrendForce has found that TV panel prices have been maintaining their upswing in August, with 55-inch panels and 32-inch panels each registering price hikes of about 10%.
Samsung lifestyle 31May2020
The analyst says that overall the panel industry is projected to make a significant improvement in terms of profitability in the third quarter of the year and that a TV panel shortage is projected to intensify in Q3 20 as TV brands aggressively stock up in anticipation of capturing TV market share. TrendForce expects most panel manufacturers to make a rebound out of the seven consecutive quarterly losses they had previously suffered and finally turn a profit, in either August or September.

In its study it noted that TV panel quotes are almost entirely dictated by panel manufacturers at the moment. In particular, 55-inch panels and 32-inch panels, which are both made in Gen 8.5 fabs, have been the star performers among various panel sizes by posting the highest price hikes in August 2020. As well, given the strong demand for 43-inch panels, all three panel sizes are projected to register price hikes of about 10% in August. Other panel sizes, namely 50-inch, 65-inch, and 75-inch panels, are expected to record price hikes of 8-10%, 5-7%, and 1-2%, respectively.

The analyst attributes demand for panels to two factors. First, almost all TV brands have been stepping up their panel procurement efforts to prepare for increased retail sales in the second half of 2020 and the analyst projects such procurement momentum to last until October. Secondly, it says that leading TV brands -  including Samsung, TCL and Hisense - have been increasingly favouring the strategy of obtaining competitive advantages by expanding their market shares. This strategy involves a more aggressive shipment of TVs in order to cannibalise competitors’ market shares, further contributing to the overall procurement momentum of TV panels.

With regards to the supply side of the panel industry, because of the consistently high demand for IT panels, TrendForce believes that manufacturers’ panel capacities have been remaining relatively tight, meaning panel manufacturers may raise TV panel prices as much as possible without worrying about having to digest possible excess capacity. Such a market condition it says essentially allows manufacturers to raise panel quotes while increasing production levels at an extremely slow and gradual pace.

Based on long-term shipment data compiled on TV panels and TV units, TrendForce forecasts an 11% glut ratio between panel suppliers and purchasers in the third quarter of 2020, a far lower figure than the average of 20% and also the lowest quarterly glut ratio since the start of 2017. This 11% ratio indicates the fact that panel prices made a rebound from rock bottom due to the overall shortage of panels.