What They Say
Confirming the reports we’ve seen from several analysts, DSCC updated its report on TV LCD panel pricing and confirmed the continued fall in pricing and its forecast for further falls by Christmas. Brands and retailers in the US have finally caught up with supply and have increased prices. As a result, demand is weak from set makers. DSCC expects this fact, combined with weakness in developing economies because of Covid to continue to put price under pressure.
By the end of 2021, prices are expected to be back to the level of a year ago. That will benefit TV brands in terms of profitability, although the top 4 are already profitable. Prices for panels are still above costs, so panel makers should be profitable this year, DSCC said.
The article also includes a chart on pricing/sq m which is worth a look if you want to see the likely effect on different sized TV pricing.
What We Think
Over the years, I’ve often talked about the swing from panel maker profitability to set maker profitability and that both seldom seemed to be in the same profitable space at the same time. This year, it does seem to be happening. However, if panel prices continue to fall at this rate next year it will cause the Koreans to review what they are doing in LCD, again.
DSCC also published a blog that analysed the financial results of LCD makers in Q2 and decided that ‘Q2 2021 Was the Best Quarter Ever for Flat Panel Display Makers’ . Revenues were up 48% year on year to $37.8 billion. BOE was top with $8.9 billion. The Koreans were in second and third place, highlighting their continued revenue strength. Profits were really up, with a total of $4.08 billion with BOE making $1.2 billion in the quarter. (BR)
LCD TV Panel Prices January 2020 –December 2021
