According to media reports, since the middle and late August, domestic TV companies have raised the price of their TVs one after another, generally by more than 100 yuan, reversing the previous downward trend of prices, which seems to show the end of the era of cheap TV.

In the past two or three years, the price of global TV has been in a downward trend. In China’s TV market, due to the fierce competition among TV companies, the price drop is even more fierce. Many TV brands even launch 32 inch TV with the price lower than 500 yuan, which benefits many consumers.

The era of cheap TV may come to an end when domestic TV companies raise the price of TV one after another

The reason for the continuous decline in the price of TV products lies in the surplus of LCD panel since the end of 2017. Therefore, the price of LCD panel continues to fall, accounting for nearly 60% of the cost of LCD TV. The price drop of LCD panel has greatly reduced the cost of LCD TV, which has become the main reason to promote the continuous price of LCD TV.

The oversupply of global LCD panel lies in the capacity expansion of Chinese panel enterprises. At the end of 2017, BOE, the largest panel enterprise in China, put its first generation 10.5 production line into production, which is also the most advanced LCD panel production line in the world. As a result, the production capacity of LCD panel increased significantly. In 2019, TCL Huaxing, the second largest panel enterprise in China, put its first generation 11 LCD panel production line into production, making progress This step aggravates the situation of LCD panel overcapacity.

As China’s two major panel companies expand their LCD panel production capacity one after another, South Korean Panel Companies Samsung and LGD think they can’t compete with China’s Panel Companies in terms of cost. Therefore, they choose to close their LCD panel production lines and turn to developing more advanced technologies such as qled and OLED. Samsung plans to close all LCD panel production lines by the end of this year.

This year, due to the impact of the epidemic, various countries have introduced home isolation measures to control the epidemic, which has promoted the sales of TV. Due to the decline of consumers’ income, consumers have turned to low-cost and high-quality LCD TV instead of more advanced qled and OLED TV, which has also promoted the sales of LCD TV.

Therefore, on the one hand, due to the reduction of LCD panel production capacity by Korean panel enterprises, the supply has been reduced, and on the other hand, the market demand for LCD panel has increased. Under this situation, the LCD panel market has rapidly changed from oversupply to undersupply, leading to the rise of LCD panel prices.

Since June, the rising trend of global LCD panel prices began to accelerate, and it has been rising for three consecutive months in August. Analysts believe that LCD panel prices will continue to rise. The continuous rise of LCD panel prices has pushed up the cost of LCD TV, forcing TV companies to increase the price of LCD TV.

From the e-commerce platform, we can see that 32 inch LCD TVs with a price lower than 500 yuan are no longer available. Domestic well-known TV brands such as Xiaomi, Skyworth and TCL have raised the price of TVs one after another. Small size TVs have raised the price by more than 100 yuan everywhere, and large size TVs have even raised the price by 1000 yuan.

The continuous rise of LCD panel prices is a great benefit to BOE and TCL, the two largest LCD Panel Companies in China. In the past two years, their performance has declined due to the continuous decline of LCD panel prices. Now, the continuous rise of LCD panel prices will promote their performance to rise significantly.

Editor in charge ajx

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