Affected by the sluggish television market and panel prices, many companies’ TV performance declined. However, in the high-end market, sales of OLED TVs in the Chinese market in 2017 increased by 2 times compared to 2016, and the growth rate in 2018 will still reach 100%. The industry expects that the huge growth space will make the competition in China's high-end color TV market more and more fierce.
In 2017, China's color TV retail sales reached 47.52 million units, a year-on-year decrease of 6.6%, the largest decline since 2003. The 2017 annual report shows that the main profit of Hisense Electric's (600060) net profit was 942 million yuan, a decrease of 46.45% year-on-year. Hong Kong, China For the listed TCL Multimedia, LCD TV sales in mainland China fell by 2.7% year-on-year in fiscal year 2017. Skyworth’s net profit also fell compared to last year, and Shenzhen Konka TV's revenue dropped by 3.87% year-on-year.
The growth of high-end OLED TVs was in reverse. IHS data showed that in 2017, in the high-end TV market of more than US$2,500, OLED TVs accounted for 51.3% of the world's total, surpassing LCD TVs for the first time. This figure was only 15.5% in 2015. The annual rate is 35%. IHS expects that in 2018, the proportion of OLED TVs in the high-end TV market of US$2,500 will climb to 70.7%, making it the first choice for high-end consumers.
OLED panel is in short supply
According to Yikang’s forecast, the sales of OLED TVs in the Chinese market from 2017 to 2020 are expected to be 180,000 units, 550,000 units, 1.5 million units and 2.5 million units respectively. An analyst from KB Securities in Korea stated that the OLED TV panel has appeared in March of this year. 30% lack of supply and demand.
IHS data shows that from the second quarter of 2018, the number of OLED TVs in China will enter a period of rapid growth. Among them, the second quarter of 2018 is expected to increase 118.8% year-on-year, and the third quarter of 2018 is expected to increase 120.4% year-on-year. In 2019, China's OLED TV will increase by 115.5% compared with 2018.
In order to increase OLED panel production capacity, by the end of 2017, LG Display confirmed that it will build a world-leading 8.5-generation OLED TV panel production line in Guangzhou, with a production capacity of 60,000 wafers per month (based on glass substrates). Production is expected to begin in the second half of 2019. It is reported that this It is the first overseas OLED panel production line after South Korea. LG Display China President and Vice President Innolux said that after LG Display’s 8.5th generation OLED plant in Guangzhou is built, China is expected to become the world’s second OLED TV panel production base.
OLED TV's revenue from TV companies 'milk cows'
In the industry analysis, the growth of OLED TVs in the high-end market, on the one hand, meets the consumer demand for quality of life that has gradually improved; on the other hand, it also brings new profit growth points for TV manufacturers.
According to the data, as the first domestic company to promote OLED TVs, Skyworth's 2016-2017 financial report shows that in the overall slowdown in domestic TV market demand, high-margin, large-size products have greatly reduced the average price fluctuations in the industry. The impact of corporate profits, which Skyworth 4K smart TV sales in the Chinese market accounted for a significant increase to 45.9%, sales rose 53.6% year-on-year.
It is reported that currently include Japanese manufacturers such as Sony and Panasonic, Korean manufacturers such as LG Electronics, as well as Skyworth, Konka, Changhong, etc. A total of 13 TV manufacturers have joined the OLED camp, including almost all major TV companies worldwide. LG Display TV Division Marketing and Li Shangxun, vice president of marketing, told the Guangzhou Daily reporter that there will be a Chinese brand and Japanese brand TV maker joining the OLED camp this year. According to IHS statistics, the contribution rate of OLED TV to the revenue of TV manufacturers is increasing, among which Sony's overall television in 2017 Revenue increased by 21% compared to 2016, while OLED TV contribution rate reached 8%; LG Electronics' overall TV revenue in 2017 increased by 9% compared to 2016, of which OLED TV contribution rate was as high as 52%.