TV Market in Doldrums: Prices of 50, 55, and 65-Inch Panels to Surge by Over 50% This Year

During the first half of 2023, global TV shipments reached 90.4 million units, signifying a 3.5% year-on-year decline, according to TrendForce. This downward trend was despite a 7.6% growth in Q2’23 shipments. As observed by TrendForce, the rise in TV panel prices in February corresponded with China’s preparation for the 618 Shopping Festival and North America’s forecasted 3–4% TV sales growth for the year. In a bid to minimize manufacturing costs, brands increased their shipments, leading to the aforementioned Q2’23 growth.

Heading into Q3, panel manufacturers have strategically controlled production to maintain the upswing in panel prices. Brands, however, found themselves in a tight spot, unable to relay these increased costs to consumers via retail price increases. This imbalance pressed numerous brands toward the verge of financial losses for the quarter. Even with international brands ramping up shipments in anticipation of end-of-year festivities and China’s Double 11 shopping festival, the Q3 TV shipments are expected to experience an 11.9% boost, totaling 52.24 million units. Yet, this still lags behind TrendForce’s prior estimates by 1.3%.

In the context of specific panel sizes, by the end of June, panels measuring 55 inches and below hit profitable price points. It’s projected that the subsequent quarter will see 65 and 75-inch panels—mainly from the 10.5-generation line—also turning profitable. Prices of 50, 55, and 65-inch panels are poised to climb by over 50% this year. The second half of 2023 will likely continue to see panel prices soar, pushing brands to focus on more profitable lines and eliminate those less lucrative. The resulting annual global TV shipment numbers are now predicted by TrendForce to reach 198 million units, a 1.5% decline compared to the previous year.

As for the market for high-end TVs, there has seen a deceleration. OLED TV shipments are predicted to get no further than 5.44 million units by year-end, marking a -19.3% YoY drop. Although LG maintains its lead in OLED TV shipments, its market share has shrunk to 53.6%. Samsung has surpassed Sony to capture the second position, with Sony now holding 15.1% of the market. 8K TVs, plagued by limited content and high pricing, are on track for a -25.4% YoY dip in shipments, culminating at around 300,000 units.