Recently, the international panel data statistics agency IHS released the price of large-screen TV panels in March. Data show that in March, the full-size panel saw a larger price drop than the previous month. The 32-inch panel fell by 3%; the 40-inch panel fell by 4%; the 43-inch panel fell by 5%; the 49-inch panel fell by 4%; 55-inch panel fell by 1%.
For the continued decline in TV panel prices in March, IHS said it was no surprise. The main reason is that some TV manufacturers and retailers increased their inventory in February, so by March, these TV manufacturers were not in a hurry to buy panels, so they still maintained sufficient bargaining power for panel manufacturers, prompting panel manufacturers to continue Make price concessions. However, some TV manufacturers are planning to increase shipments in 2018, so taking advantage of the continued decline in TV panel prices, a certain number of panel reservations were completed in March and April.
At the same time, it can also be seen from the data that after the continued price reduction of panels, the price gap between panels of different sizes is getting smaller and smaller, which allows TV manufacturers to choose product strategies more freely without having to consider cost factors too much. Compared with the panel price in March 2017, it was found that the price reduction of the panel in March this year was so large. The price of the 32-inch panel fell by 18% year-on-year, the price of the 40-inch panel fell by 38%, and the price of the 43-inch panel fell The price of 49-inch panel fell by 27% year-on-year, and the price of 55-inch panel fell by 19% year-on-year. The reduction in cost pressure will add more confidence to TV manufacturers' promotional strategies.
Judging from some of the new TV products that have not been released yet, such as Storm TV and Micro Whale TV, we can also see the manufacturers' actions to complete the product chain. Storm TV has filed a variety of 65-inch large-size TVs on the 3C website, and the 32-inch small-size new products of the Micro Whale TV D series have also been exposed on the 3C website, all of which are used to fill the previous size gaps.
It is worth noting that the sharp decline in panel prices may force panel manufacturers to change their business strategies, such as reducing production capacity and other means to ensure operating profits, so there is also a market risk of supply chain disruption. However, if panel manufacturers reduce production capacity, production costs will increase accordingly. Once actions are taken to control supply, if demand in the second quarter still does not recover, panel manufacturers will face a difficult situation. In addition, South Korean and Taiwanese panel makers are concerned that BOE's 10.5 generation line will be produced in March because its first product, the 65-inch panel, has been approved by 10 TV manufacturers.
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