The TV market continues to face a downturn, with panel prices finally giving in to weak demand. According to Runto Technology, prices for LCD TV panels universally declined in July, indicating a possible shift after a period of artificial stability.
This development follows a disappointing first half of 2023 for the TV industry. Global TV brand shipments plummeted to a ten-year low, and despite hopes for a rebound, 2024 has seen little improvement. Sales remain slow, with the Chinese market—a key sector—experiencing a year-on-year decline of 4.2%.
Ten-Year Low Shipments Dampen Demand: Panel Prices Under Pressure
Although TV manufacturers haven't accumulated high inventory levels, sluggish retail sales are causing hesitation among buyers. This reluctance to place new orders is exerting pressure on panel prices. However, the situation is complex. Panel manufacturers are wary of reducing prices significantly. While substantial price cuts might boost demand, there is a risk of triggering an uncontrollable price decline.
Analysts believe that the prior “price control” strategy, which temporarily stabilized key panel sizes for two months, ultimately couldn't counter market dynamics. Weak demand in the TV market appears to be the primary driver behind the price drop. This suggests a shift towards a more market-driven pricing structure for TV panels.
Navigating the Market Challenges
The current scenario presents a tough challenge for both TV manufacturers and panel producers. Balancing inventory management with stimulating consumer demand through strategic pricing will be essential for navigating this challenging market environment.
Experts maintain a cautiously optimistic outlook for a potential future upswing. Technological advancements, such as improvements in OLED or MicroLED displays and enhanced picture quality or innovative features, could revive consumer interest. However, the industry must endure the current difficulties before focusing on reigniting growth.
