According to reports, due to the significant effect of panel price reduction and the need for temperature recovery, the global LCD TV market is expected to rebound in 2018. The panel price will stop falling in the second quarter of next year, and the current large-scale acceleration is in progress.

For most TV brands, 2017 is a very tough year. Affected by the continued rise in the price of liquid crystal panels, the cost pressure of color TV sets has doubled. According to the latest research report of Jibang Consulting Optoelectronics Research Center (WitsView), it is estimated that the global LCD TV brand shipments will reach 210 million units in 2017, a year-on-year decrease of 4.1%.

The LCD TV market is expected to pick up in 2018 due to panel price reduction, and large-scale acceleration is underway.

The reporter noted that the panel prices began to reverse in the second quarter of 2017, and the average has fallen by more than 17%. As the price drop of the panel reflects the lag of the price of the whole machine, WitsView analysis said that in 2018, under the factors of significant panel price reduction and demand recovery, it is estimated that the global LCD TV brand shipments will rebound to 218 million. Taiwan, an annual increase of 3.9%.

Panel prices may stop falling in the second quarter of next year

It is understood that the price of panels in recent years is like a "roller coaster". Since April 2016, LCD panel prices have continued to rise. By May 2017, it lasted 14 months, which is the longest price increase in panel history. The price of LCD panels continues to rise, which directly leads to a multiplication of cost pressures for color TV manufacturers.

Quinzhi Consulting analyst Joyce told reporters that "the panel price dropped the most this year. From the second quarter of this year to the end of the year, the panel prices are continuing to decline. The price reduction space next year should not be so big. Partial size panels for the first quarter of next year. There may be a decline, but the magnitude should be reduced a lot. The price may stop in the second quarter of next year and will not fall any more."

Previously, due to the price increase of the panel, domestic color TV manufacturers increased the price of some TVs. Joyce analysis said, "TV should have a price cut next year, because the panel price has fallen for half a year, and the cost will be lower at the beginning of next year, so manufacturers still have some effort to make some promotions. Manufacturers' expectations for next year are still quite large. For example, the cost at the beginning of this year is very high, and the profit margin of the whole machine factory is very small, and there will be an increase in the selling price."

Large size acceleration is in progress

According to Joyce, “A lot of Internet TV brands appeared in the past few years, causing many traditional brands to cut prices with them. The price of the whole machine has reached a very low water level. But last year, the price of the panel has been rising, and the whole machine factory is facing one. The big problem is the loss. Many of the machine manufacturers’ financial reports are not very good this year, and some are basically close to losses. Coupled with the fact that many Internet brands are still a bit sluggish this year, in general, the sales in the entire Chinese market this year are not very ideal."

WisView analyst Yang Qingxiang believes that the panel price cuts and the "Double 11" festival promotion, etc., the TV brand's shipping force continues to strengthen, the brand also hopes that this momentum can continue to the Spring Festival next year. Large-scale sports events such as next year's Winter Olympics are expected to continue to heat up the TV market.

As for the upstream panel resources, the reporter learned that the main supply of 43-inch, 50-inch and 65-inch panels will be supplied in 2018. The whole machine manufacturer will expand the layout of 43-inch, 50-inch, 55-inch, 65-inch and oversized products in 2018. The proportion of small and medium size will gradually decrease, and the large size will accelerate.

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