IHS announces six major reasons for the dramatic drop in TV panel prices in April 2018

Recently, IHS released the global TV panel price in April. According to the report, TV panel prices continued to decline in April, and the overall decline rate was larger, which was significantly higher than the general market expectation.

Among them, the 32-inch panel price cuts reached 8%, 40吋, 43吋, and 49吋 panel price cuts reached 5%, while the 55吋 panel prices dropped by about 3%.

According to the IHS analysis, the reasons for the sharp drop in the prices of TV panels in April were mainly in the following six areas:

In early April, the United States issued a list of proposed tariffs on Chinese products. The U.S. trade representative proposed to impose an additional 25% tariff on Chinese products on the list. The category on the list includes a number of television components, although it is not currently involved. TV machine, but supply chain fluctuations will still affect demand.

2. World Cup demand forecast is weaker than expected.

3, Chinese TV manufacturers' performance in the first quarter of 2018 was higher than expected, but they lowered their forecast for panel purchases in the second quarter.

4. Most panel makers decided to maintain production capacity in the second quarter in order to maintain cost competitiveness.

5, BOE's 10.5 generation line has been able to produce 65-inch panels, there are already more than 10 TV manufacturers have been eligible to purchase panels, some TV makers as a bargaining chip for price negotiation, despite the production capacity of BOE 10.5 line Not completely released.

6, In order to clear inventory, television manufacturers are pricing TV at a lower price, so they demand that panel makers make more price concessions in the second quarter.

Given this situation, in the next April and May, the panel price negotiation will become extremely difficult. According to the panel maker’s requested panel price, it is also lower than the low point of the previous cycle, IHS expects not to Any panel maker is willing to take financial losses.

Therefore, there may be panel makers to readjust the utilization rate of the production line or adjust the production capacity so that the panel price will not be lower than the cost. At the same time, the risk of supply chain interruption cannot be ignored. Also, the price war has already started, especially 65 TVs. , Lower sales prices are likely to drive the number of transactions in the second half of 2018. In addition, if the U.S. tariff issue is resolved, retailers may have to resume demand for the second quarter.

2016 GoodChinaBrand | ICP: 12011751 | China Exports