In the wake of the 618 shopping festival, Cinno Research is reporting that TV sales demonstrated strong year-on-year (YoY) performance. The market demand for sets remained resilient despite a substantial spike in panel prices, particularly for 65+ inch TVs.
In China, during the 2023 June 18 period, the 618 shopping festival, TV sales on prominent Chinese e-commerce platforms experienced impressive YoY growth, according to Cinno Research, indicating the resilience of the TV category amidst challenges faced by other consumer electronics segments. By controlling inventories and managing production better, panel makers were able to leverage consumer sales to get more favorable panel pricing and ease up profit pressures. Consequently, panel prices and TV MSRPs are expected to continue rising after the feeding frenzy of 618.
Big brand TV customers’ demand saw approximately 10% annual growth as a result of the recent growth spurt in the industry. However, the utilization rate of G10.5/11 and G8.6 production lines has nearly reached its peak. Therefore, the potential for future production increases are limited and that squeeze on product availability is likely to lead to even sharper prices rises for 65+ inches panels. The pace of price escalation is anticipated to gradually slow down by Q4’23 as demand cools off.
