Vertical Divider
Hisense Raises TV Prices
Hisense will be instituting a price increase of 5% to 10% on its TV products as of March 16. Hisense has roughly a 9% share of the global TV market, up from 6.5% in 2019, which is close to that of its Chinese rival TCL’s 10.9%. Samsung and LG are the market with 23.6% and 11.6%, respectively. While the price increases are relatively minor, expect more to follow across the entire TV space as panel prices continue to rise.
Display panel manufacturers TCL and Innolux have said they are expecting supply of liquid crystal display (LCD) panels to be tight throughout the year.
TCL chairman Li Dongsheng said at a media briefing last week that the shortage in panels will continue in the first half of 2021. The situation for the second half of the year is unclear, but panel supply overall in 2021 will be tight, the chairman said. Innolux president James Yang made similar comments as Li, saying the shortage in LCD panels caused by strong demand for LCD since the spread of COVID-19 is expected to continue through 2021.
Yang said shortages in LCD components such as power semiconductors, driver ICs and glass substrates have caused companies to manufacture less LCD panels than their actual production capacity. The shortage in ICs was the most serious and may continue up to the first half of 2022, the president said.
Display panel makers in Greater China are transitioning their Gen 8.5 TV lines form TVs to IT panels as more Gen 10.5 production by BOE, CSoT and Foxconn reaches MP. Omdia believes many panel makers have targeted panel prices to the levels in the first half of 2017, when prices peaked. This will be especially true for 55-inch panels, the firm said.
Due to the shortage in driver ICs, panel makers are preferring to manufacture the more profitable IT panels over smaller TV panels. TV manufacturers are face with the dilemma of either a) increasing TV prices, b) reducing panel purchases or c) changing the mix to favor more profitable sizes.
Meanwhile, panel makers have been lowering production volume, which is keeping prices higher than normal. Both Samsung Electronics and LGE have requested their display-making affiliates to extend LCD production thru 2021 and the dates for shuttering the LCD fabs are now well into 2022.
Omdia reports TV panel prices have increased from June to December’20:
Glass substrate makers NEG and AGC Fine Techno Korea suffered shutdowns of their factories in December and January, respectively, which further intensified the panel shortage. These companies are yet to normalize production and supply to customers.
Source: THE ELEC, Korea Electronics Industry Media(http://thelec.net)
Hisense will be instituting a price increase of 5% to 10% on its TV products as of March 16. Hisense has roughly a 9% share of the global TV market, up from 6.5% in 2019, which is close to that of its Chinese rival TCL’s 10.9%. Samsung and LG are the market with 23.6% and 11.6%, respectively. While the price increases are relatively minor, expect more to follow across the entire TV space as panel prices continue to rise.
Display panel manufacturers TCL and Innolux have said they are expecting supply of liquid crystal display (LCD) panels to be tight throughout the year.
TCL chairman Li Dongsheng said at a media briefing last week that the shortage in panels will continue in the first half of 2021. The situation for the second half of the year is unclear, but panel supply overall in 2021 will be tight, the chairman said. Innolux president James Yang made similar comments as Li, saying the shortage in LCD panels caused by strong demand for LCD since the spread of COVID-19 is expected to continue through 2021.
Yang said shortages in LCD components such as power semiconductors, driver ICs and glass substrates have caused companies to manufacture less LCD panels than their actual production capacity. The shortage in ICs was the most serious and may continue up to the first half of 2022, the president said.
Display panel makers in Greater China are transitioning their Gen 8.5 TV lines form TVs to IT panels as more Gen 10.5 production by BOE, CSoT and Foxconn reaches MP. Omdia believes many panel makers have targeted panel prices to the levels in the first half of 2017, when prices peaked. This will be especially true for 55-inch panels, the firm said.
Due to the shortage in driver ICs, panel makers are preferring to manufacture the more profitable IT panels over smaller TV panels. TV manufacturers are face with the dilemma of either a) increasing TV prices, b) reducing panel purchases or c) changing the mix to favor more profitable sizes.
Meanwhile, panel makers have been lowering production volume, which is keeping prices higher than normal. Both Samsung Electronics and LGE have requested their display-making affiliates to extend LCD production thru 2021 and the dates for shuttering the LCD fabs are now well into 2022.
Omdia reports TV panel prices have increased from June to December’20:
- 32-inch, the price increased by 94%.
- 43-inch panels by 65%,
- 50-inch by 64%,
- 55-inch by 59%
- 65-inch by 25%
Glass substrate makers NEG and AGC Fine Techno Korea suffered shutdowns of their factories in December and January, respectively, which further intensified the panel shortage. These companies are yet to normalize production and supply to customers.
Source: THE ELEC, Korea Electronics Industry Media(http://thelec.net)
|
Contact Us
|
Barry Young
|