TV Market Goes In Multiple Directions But Price Rises Are Certain
LG Electronics this week finally rolled out their 2021 TV line-up, two months later than normal, with insiders tipping major price rises for TVs overall as consumers drive up sales of large screen TV’s.
Leading Asian research Company DigiTimes who are close to Asian, in particular Chinese and South Korean manufacturers of display panels are claiming that prices could rise as much as 60% for some display panel. This could translate to a !5 to 20% jump in retail store prices for TV’s.
DigiTimes said “With TV prices continuing rising, the global TV market and related supply chains will face more pressure in the second half of 2021”.
Quotes for 32-inch panels have moved up 150%, those for 43- 50- and 55-inch models have more than doubled, and those for 65- and 75-inch ones have gained 30-60% sources seeking quotes from manufacturers claim.
At this Week’s LG Electronics TV launch local management were none committal on price rises, they did however claim that LG Electronics were not reliant on external manufacturers for their TV’s and as such they were “less impacted” by supply and component price rise issues.
The sharp increases in panel prices have brought operating pressures for TV ODMs and resulted in heavy losses for TV vendors claim DigiTimes.
In Australia TV brands are also having to pay more for freight which in some cases is being absorbed by brands while other are passing on price increases claim retailers.
Research of TV sales in Australia reveal that brand vendors have raised their retail prices, while also accelerating their product toward large-size TV models to maintain profitability.
Chinese TV brands such as Hisense have raised the quotes of their domestic prices by more than 30% on average since the third quarter of 2020, claim analysts, who also claim that Chinese vendors have also hiked their prices for overseas shipments since the first quarter of 2021 depending on different market conditions.
The price increases will eventually affect demand for TVs in the end market in the second half of 2021, said the observers, adding TV vendors should refocus their competition, enhance the value of their products.
The way people live, work and study will change significantly in the post-pandemic era claim researchers such as Roy Morgan.
Another issue that is beneficial for retailers is that the humble TV is no longer just a TV but is fast becoming an integrated hub device supporting social, gaming and entertainment activities, while connecting with other IoT devices that enable the creation of new lifestyles, for consumers.