What They Say
DSCC published a forecast from its TV set research partner, DiScien Consulting that forecast that highlights that its forecast for global TVs this year will be reduced by 4.6 million units, with 3.6 million of those sets directly affected in the Russian and Ukranian markets and 1.0 million reducing because of the impact on other markets.
Most sets consumed in Russia are made in Russia, because of duty issues, and in 2020, 96% of all demand was supplied from local factories.
The Korean brands will be most affected and Samsung and LG have both suspended shipments to Russia. DiScien reports that Samsung’s TV plant in Russia is operating normally, but this may change under pressure from either the Korean or Russian governments. The Russian government may impose sanctions because of the blocking of supply or there may be a backlash from Russian consumers over the action.
DSCC added its own comments that the effects of inflation on fuel and food may have a larger impact globally than the directly affected sets on the 250 million set TV market.
What We Think
As Paul Gray said to me a couple of decades ago; “Everyone has a TV set and if yours breaks, you’re not going to take up reading”. He’s right in the sense that most of the TV market is just replacement. Upgrades can be deferred, but some replacement is built in to the market. However, you may go for a lower cost or smaller set than you would have liked. (BR)
