After LeTV announced twice the price increase of some TV models, recently Xiaomi TV also made price adjustments on some of its products. Previously, TCL, Changhong, Skyworth and other traditional color TV companies also adjusted their product structure because of price factors. This makes LCD TVs, which have been declining prices for more than a decade, have been pushed to the forefront of public opinion because of price increases. What actually touched the nerve of LCD TV prices?
The rise in panel prices is the main reason. In the second half of the year, it is hoped that the reasons for the increase in color TV prices will be loosened. In addition to the increase in the cost of raw materials and components due to changes in the exchange rate of the RMB, many color TV companies attribute the increase in price of the upstream LCD panels.
After the LCD panel experienced rapid price decline, it began to rebound in the second half of 2016. Data shows that 32-inch panel prices rose from 50 US dollars to 75 US dollars, an increase of 50%; 40-inch high-definition panel from 85 US dollars in January 2016, rose to 140 US dollars in December 2016, an increase of nearly 80%. This wave of panel prices has not yet ended, directly led to color TV manufacturers could not bear the pressure, had to raise prices.
For the reasons for the panel price increase, IHS Display Division Research Manager Xie Qinyi said that in 2016 Samsung Display shut down its 7th-generation LCD panel production line, which supplies most of the world's 40-inch thin-film-transistor liquid crystal displays (TFTs), resulting in LCD panel prices The price increase has been very large since 2016.
At the same time, although China's BOE, China Star Optoelectronics and other manufacturers have recently invested in the construction of a number of 8.5 generation line and more than 10 generations of LCD panel production lines, but most of these production lines have not yet achieved mass production.
In fact, over the past ten years, the prices of LCD panels have experienced periodical increases, but they have not affected the prices of end products. Color TV prices have been declining. Why did color TV start to move up from the previous year?
Zhang Bing, Director of IHS Market Research, analyzed that domestic color TV brands took a very intense price war in the past year to seize market share, and the selling price was even lower than the cost price. Therefore, the Internet color TV company LeTV and Xiaomi could not resist first. Pressure announced price increases.
After the price of color TV recovers to a more reasonable level, the price increase will also come to an end. According to Peng Xiandong, general manager of China Unicom's black and white division, there is not much space for this panel price increase, and the price of 32-inch panel has been recalled. According to changes in market demand, large-size panel prices still have room to rise. From the perspective of the supply chain, the market sales in January were not satisfactory, and the number required on the demand side decreased. The situation of tight supply will be eased. Overall, the price of the LCD panel at the top will continue until May and June. With the new production line in operation in the second half of the year, panel prices will start to loosen.
The knockout is coming soon, and the high-quality quality line is the way out. For this round of price hikes, the pressure from Internet TV manufacturers is obviously greater than traditional TV manufacturers. On the one hand, traditional color TV manufacturers have the advantage of taking control of the supply chain, and have a rich product line from low-end to high-end products. They can resolve some of the pressure through product structure optimization. On the other hand, traditional color TV manufacturers have established long-term stability with panel manufacturers. The relationship between supply chain, when the panel price fluctuates, is affected less, especially the advantage of TCL with upstream and downstream advantages of the industrial chain is more obvious.
Su Zihuan, general manager of Changhong New Media, said in an interview with the China Electronics News reporter that although Changhong TV's average unit price has risen, it has not risen. Traditional color TV manufacturers rely on two ways to resolve the pressure brought by price increases: First, scale advantages, companies with more than 10 million units of sales have enough room to absorb the pressure of rising costs; second, adjust the product structure and temporarily freeze Because of the rising cost of raw materials, it is impossible to continue to obtain profit models, and instead recommend high-end products to consumers.
From an objective point of view, TV competition has become more intense in recent years. In particular, internet brands entered the color TV market in 2013. Marketing campaigns have been repeated, and some have even used the marketing strategy of buying content and delivering hardware, which has caused TV prices to continue to be pushed down and entered low prices. The vicious war of prices is actually not a benign development mode for the color TV industry. In the fierce market competition, some internet brands have begun to fade out of the market since 2016. For example, barley has quietly delisted from Jingdong and Tmall. In 2017, only brands that will fight prices and fight against configuration will be eliminated. .
Coolo chairman Wang Zhiguo told the China Electronics News reporter that when he launched the new product last year, he had already predicted that the price would rise, so the high-end models were introduced to the market. Under the new market strategy, Cool Open has not been affected much in this round of price increase at the beginning of this year. According to him, there is no plan to raise prices before April.
It can be said that the bottomless price war has become a thing of the past. With the upgrading of the consumption structure and continuous optimization of the product structure, TV price adjustment has become a trend, and the market consumption will gradually return to rationality. In 2017, quantum dots TVs, OLED TVs, and 4K/8K ultra high-definition televisions, which represent high-end trends, will become a trend, and color TVs will also develop toward a large-screen, intelligent, and quality-oriented route.
The rise in panel prices is the main reason. In the second half of the year, it is hoped that the reasons for the increase in color TV prices will be loosened. In addition to the increase in the cost of raw materials and components due to changes in the exchange rate of the RMB, many color TV companies attribute the increase in price of the upstream LCD panels.
After the LCD panel experienced rapid price decline, it began to rebound in the second half of 2016. Data shows that 32-inch panel prices rose from 50 US dollars to 75 US dollars, an increase of 50%; 40-inch high-definition panel from 85 US dollars in January 2016, rose to 140 US dollars in December 2016, an increase of nearly 80%. This wave of panel prices has not yet ended, directly led to color TV manufacturers could not bear the pressure, had to raise prices.
For the reasons for the panel price increase, IHS Display Division Research Manager Xie Qinyi said that in 2016 Samsung Display shut down its 7th-generation LCD panel production line, which supplies most of the world's 40-inch thin-film-transistor liquid crystal displays (TFTs), resulting in LCD panel prices The price increase has been very large since 2016.
At the same time, although China's BOE, China Star Optoelectronics and other manufacturers have recently invested in the construction of a number of 8.5 generation line and more than 10 generations of LCD panel production lines, but most of these production lines have not yet achieved mass production.
In fact, over the past ten years, the prices of LCD panels have experienced periodical increases, but they have not affected the prices of end products. Color TV prices have been declining. Why did color TV start to move up from the previous year?
Zhang Bing, Director of IHS Market Research, analyzed that domestic color TV brands took a very intense price war in the past year to seize market share, and the selling price was even lower than the cost price. Therefore, the Internet color TV company LeTV and Xiaomi could not resist first. Pressure announced price increases.
After the price of color TV recovers to a more reasonable level, the price increase will also come to an end. According to Peng Xiandong, general manager of China Unicom's black and white division, there is not much space for this panel price increase, and the price of 32-inch panel has been recalled. According to changes in market demand, large-size panel prices still have room to rise. From the perspective of the supply chain, the market sales in January were not satisfactory, and the number required on the demand side decreased. The situation of tight supply will be eased. Overall, the price of the LCD panel at the top will continue until May and June. With the new production line in operation in the second half of the year, panel prices will start to loosen.
The knockout is coming soon, and the high-quality quality line is the way out. For this round of price hikes, the pressure from Internet TV manufacturers is obviously greater than traditional TV manufacturers. On the one hand, traditional color TV manufacturers have the advantage of taking control of the supply chain, and have a rich product line from low-end to high-end products. They can resolve some of the pressure through product structure optimization. On the other hand, traditional color TV manufacturers have established long-term stability with panel manufacturers. The relationship between supply chain, when the panel price fluctuates, is affected less, especially the advantage of TCL with upstream and downstream advantages of the industrial chain is more obvious.
Su Zihuan, general manager of Changhong New Media, said in an interview with the China Electronics News reporter that although Changhong TV's average unit price has risen, it has not risen. Traditional color TV manufacturers rely on two ways to resolve the pressure brought by price increases: First, scale advantages, companies with more than 10 million units of sales have enough room to absorb the pressure of rising costs; second, adjust the product structure and temporarily freeze Because of the rising cost of raw materials, it is impossible to continue to obtain profit models, and instead recommend high-end products to consumers.
From an objective point of view, TV competition has become more intense in recent years. In particular, internet brands entered the color TV market in 2013. Marketing campaigns have been repeated, and some have even used the marketing strategy of buying content and delivering hardware, which has caused TV prices to continue to be pushed down and entered low prices. The vicious war of prices is actually not a benign development mode for the color TV industry. In the fierce market competition, some internet brands have begun to fade out of the market since 2016. For example, barley has quietly delisted from Jingdong and Tmall. In 2017, only brands that will fight prices and fight against configuration will be eliminated. .
Coolo chairman Wang Zhiguo told the China Electronics News reporter that when he launched the new product last year, he had already predicted that the price would rise, so the high-end models were introduced to the market. Under the new market strategy, Cool Open has not been affected much in this round of price increase at the beginning of this year. According to him, there is no plan to raise prices before April.
It can be said that the bottomless price war has become a thing of the past. With the upgrading of the consumption structure and continuous optimization of the product structure, TV price adjustment has become a trend, and the market consumption will gradually return to rationality. In 2017, quantum dots TVs, OLED TVs, and 4K/8K ultra high-definition televisions, which represent high-end trends, will become a trend, and color TVs will also develop toward a large-screen, intelligent, and quality-oriented route.
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