What They Say
DSCC has been tracking the US Bureau of Labor Statistics (BLS) Consumer Price Index (CPI). Over many years, the index data for the TV set segment was much lower than the overall consumer price index. This changed over the last year as LCD prices rose and set makers passed some of that cost increase on. However, the CPI for TVs seems to have started to change less rapidly as last month ‘all prices’ went up by 0.8%, while TV prices were down 2.2%.
The firm said that Black Friday TV prices in the US will be above the level of last year but expects to see set prices falling later in the year after the peak of LCD prices in the summer and the significant drop since.
What We Think
The firm said that it takes three to four months for panel price changes to work through to the market in the US.
On a related topic, I have seen some good pricing for LG OLED TVs in the UK recently. The higher prices of LCDs have really been a help for LG Display as it looks to expand OLED penetration to absorb its increased production of OLED panels in China. Next year may see a trickier situation as the LCD supply chain gets back towards some level of stability. (BR)
Y/Y % Change in US Consumer Price Index, 1997-2021
