TV brands set to place priority on large-sized TVs and OLED TVs | 4K/UltraHD | News | Rapid TV News
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After demand generated by the persistent stay-at-home economy in 2020 and from the emerging markets in certain developing countries, global TV shipments for 2021 are expected to reach 223 million units, a 3.1% growth year-on-year, according to research from TrendForce.
Samsung lifestyle 31May2020
The specialist display analyst noted that the delay of UEFA Euro 2020 and the Tokyo Olympics until this summer will likely also play a role in driving up TV demand, regardless of whether live attendance will be allowed at the events.

However, it added that prices have increased repeatedly and considerably for not only IC components used in TV set assembly, which are in shortage due to tight foundry capacities, but also TV panels. And the price hike in TV panels has actually persisted since June 2020, with 32-inch panels, which are indicative of the rest of the TV panel market, reaching a massive 134% price hike for the period.

TrendForce believes that the increase in panel prices has made it difficult for white-label manufacturers and tier 2/3 brands, which have traditionally relied on aggressive pricing to achieve their sales performances, to procure sufficient panels. While TV shipment from these companies has been gradually declining since last year, suppliers have by contrast been giving major TV brands top priority ahead of the aforementioned companies to procure both panels and components because major TV brands generally place orders regularly and in large quantities.

The analyst calculates that for the first time ever, the combined market shares of the top five brands, which are Samsung, LG, TCL, Hisense, and Xiaomi, surpassed 60% last year. TrendForce expects this figure to increase further to 62% in 2021, representing the fact that the TV market is progressively becoming an oligopoly. It adds that as brands begin to favour large-sized products, 60-inch and larger TVs are expected to account for 17.7% of total TV shipment for the first time ever.

Another key trend is that the difference between OLED and LCD panel prices narrows, TV brands are compelled to accelerate their OLED TV strategies. In response to the massive price hike of LCD panels, TV brands have begun to slightly raise the retail prices of TVs across various segments in order to keep up their bottom lines. However, only a slow and gradual price hike is expected to take place.

The OLED panel market, on the other hand, has taken an opposite turn compared to the LCD market. For instance, prices of 55-inch UHD OLED panels were four times the prices of equivalent LCD offerings at the start of 2020, 2.9 times at the end of 2020, and 2.2 times in 1Q21, while prices of LCD panels underwent monthly increases. In addition to the narrowing gap between OLED and LCD panel prices, the panel industry’s production capacity for OLED panels saw a major boost thanks to the capacity expansion of LGD’s Gen 8.5 fab in Guangzhou.

TrendForce expects OLED TV shipment for 2021 to reach 6.76 million units, as much as a 72% increase YoY, as OLED offerings become the top strategic priorities of TV brands in the high-end TV market this year.