LCD panel prices continue to rise, color TVs will usher in a new round of price increases

As of late February 2021, the prices of the current mainstream 32-inch, 43-inch, 55-inch and 65-inch LCD TV panels have risen by 119%, 81%, 84% and 46% respectively compared to May 2020. Hu Jian, head of the electronics industry group at Huatai Securities Research Institute, said that this round of panel price increases is expected to last at least until the first half of this year, and prices are expected to remain at a high level throughout the year. Some color TV companies have also quickly raised the retail prices of their products. According to data from Aowei Cloud Network, the average price of color TVs also rose in January this year, with an average offline price of 4,573 yuan, a year-on-year increase of 22.3%.

From the second half of last year to the beginning of this year, panel prices continued to rise, and the entire industry ushered in one of the longest price increase cycles in history.

Since last year, with the outbreak of the "stay-at-home economy" in overseas markets, the color TV retail market in Europe and the United States has performed strongly; domestically, demand for products such as TVs and notebooks remains strong. The continued release of new production capacity by domestic panel manufacturers and the progress of capacity withdrawal by Korean manufacturers have directly affected global panel shipments. The industry predicts that the actual supply area of ​​global LCD panels will increase by less than 5% year-on-year in 2021, and the imbalance between supply and demand may further increase panel prices.

In this round of panel price increases, the major color TV manufacturers are the most affected. It is understood that the display can account for more than 50% of the cost of an LCD TV. Data shows that in January this year, the retail sales of my country's color TV market reached 3.3 billion yuan, a year-on-year increase of 17.6%; at the same time, the average price of color TVs also rose, with an offline average price of 4,573 yuan, a year-on-year increase of 22.3%. Against the backdrop of continued tight supply and demand of panels, the color TV industry is bidding farewell to price wars, and some color TV manufacturers are ready to further increase prices.