The TV market slump continues, with panel prices finally succumbing to weak demand. According to Runto Technology, July saw a universal decline in LCD TV panel pricing, signaling a potential shift after a period of artificial stability.TV market struggles persist as panel prices show first signs of weakness
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This news comes after a disappointing first half of 2023 for the TV industry. Global TV brand shipments hit a ten-year low, and despite hopes for a rebound, 2024 has seen minimal improvement. Sales remain sluggish, with the Chinese market, a crucial sector, experiencing a year-on-year decline of 4.2%.
Ten-Year Low Shipments Dampen Demand: Panel Prices Under Pressure
While TV manufacturers haven’t yet accumulated high inventory levels, sluggish retail sales are causing buyer hesitancy. This reluctance to place new orders is putting pressure on panel prices. However, the situation is a double-edged sword. Panel manufacturers themselves are apprehensive about lowering prices. Significant price cuts might stimulate demand, but there’s a risk of triggering an uncontrollable downward spiral.TV market struggles persist as panel prices show first signs of weakness
Analysts believe the previous “price control” strategy, which temporarily stabilized key panel sizes for two months, ultimately couldn’t defy market forces. Weak demand in the TV market seems to be the driving factor behind the price decline. This suggests a return to a more market-driven pricing structure for TV panels.
The current situation presents a complex challenge for both TV manufacturers and panel producers. Striking a balance between managing inventory levels and stimulating consumer demand through strategic pricing will be crucial for navigating this difficult market environment.
Experts are cautiously optimistic about a potential future upswing. Technological advancements like advancements in OLED or MicroLED displays, coupled with features like improved picture quality or innovative functionalities, could reignite consumer interest. However, the industry needs to weather the current storm before it can focus on reigniting growth.
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