Will LCD TV panel prices fall for a long time?
1, LCD TV panel prices will fall for a long time? LGD Korea is reportedly planning to drastically reduce production
Chinese factories have been churning out LCD (liquid crystal display) TV panels, flooding the world with supply and causing LCD prices to fall. LG Display (LGD), a South Korean panel giant, is rumoured to be struggling to compete, with production plunging by 10% in the second half of this year.
The Korea Economic Ilbo reported on Tuesday that LGD's LCD PANEL output in the second half of this year will drop by more than 10 percent compared to the first half as its plants in Paju, South Korea, and Guangzhou, China will cut down the production of glass panels from LCD assembly lines starting this month. It is understood that LGD will not withdraw from the LCD business completely in the near future, but will focus more on producing OLED panels.
LGD decided to cut production sharply as the price of LCD TV panels around the world continued to fall due to the Chinese factory's massive production and competitive price to capture the market. This comes after another South Korean manufacturer, Samsung Display, announced it would exit the LCD business by the end of 2022 due to deteriorating profits.
Prices for 55-inch LCD TV panels have fallen 30 percent in the past six months, to $150 in April and an estimated $103 in May, according to Omdia. Over the same period, prices for 65-inch LCD TV panels plunged 19.5%, from $173 in April to an estimated $170 in May.
South Korean panel industry officials say increased competition from Chinese plants has made it difficult to produce LCD panels above cost. Samsung decided that the panel decline is not temporary and gave up the development and production of LCDS. It is expected that prices for LCD TV panels will accelerate in the second half of the year as people return to their pre-epidemic lifestyles. Observers say LGD is struggling to maintain price competitiveness compared with its Chinese plants and could eventually abandon the LCD business.
2. TV panel prices continued to fall in May
In April, panel prices continued to drop in full-size prices again; Affected by the outbreak of the War between Russia and Ukraine, the global TV demand is weak, especially the demand of the European market plummets, and the demand of the North American market does not pick up, resulting in Samsung, LG affected to cut orders.
At present, the domestic TV terminal market demand is low, in recent months, the complete machine brand shows a reasonable inventory and conservative attitude.
32 inches: Down $1 to $38 in April Prices are expected to continue to fall by $2 in May.
43 inch FHD: April price decline was the same as March, down to $66; Prices in May are expected to drop by the same amount as in April, by another $1.
50 inches: April to $79, down $2; Prices are expected to slow in May, down $1.
55 inches: $4 down to $103 in April; Prices are expected to drop by $3 in May.
Over 65 inches: The biggest drop in April, with 65, 75 inches dropping nearly $10 to $157 and $254, respectively. Both are expected to drop $5 in May.
The epidemic in Shanghai and its surrounding areas has little impact on the supply of large-sized display panels. In addition, panel manufacturers have not yet cut production. It is expected that panel prices will continue to fall in May and June, but the decline is slower than that in April. The only variable is that the terminal market will soon usher in the biggest promotion season in the first half of the year, the retail price of the whole machine may be broken down during 618, the resulting demand stimulation and sales scale remains to be seen.
