The TV market has slumped in Australia and worldwide, as a result panel manufacturers are moving to cut costs a move that some claim could stimulate the market that has been ‘flat’ for more than 12 months.
The move could result in cheaper models hitting the market in the last quarter.

According to retailers the TV market has ‘become a replacement market’ with consumers stepping up to a larger size when they do purchase a TV.

According to several research Companies July saw a universal decline in LCD TV panel pricing, signalling a potential shift after a period of artificial stability, prices for OLED panels have also fallen as Chinese manufacturers enter the market.

In several markets the new LG OLED B4 is already being discounted out due to poor demand, with the South Korean Company who witnessed a 21 slump in sales last year offering consumers direct deals on TV’s.

This morning the LG Australia web site was down.

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Sales are sluggish, with the Chinese market, a crucial sector, experiencing a year-on-year decline of 4.2%.

For consumers the downturn is not all bad news with Several manufacturers who have accumulated high inventory levels, now looking to shift stock with many turning to the recent Prime Day sales to shift stock.

Also impacting the category are sluggish retail sales with consumers hesitant when it comes to splashing out on a new TV.

As for retailers in Australia many are looking to shift sock ahead of new 2024 second half models being released that are cheaper due to a fall in panel prices.

In the first half of this year panel manufacturers have been apprehensive about lowering prices however a lack of sell through in the first half have seen several manufacturers succumb and are now lowering prices.

Chinese manufacturers believed that a significant price cut might stimulate demand, but there’s a risk of triggering an uncontrollable downward spiral.

Analysts believe the previous “price control” strategy, which temporarily stabilized key panel sizes for two months, ultimately couldn’t defy market forces.

Weak demand in the TV market then became the driving factor resulting in a move to drop panel prices.

Observers claim that ‘The current situation presents a complex challenge for both TV manufacturers and panel producers. Striking a balance between managing inventory levels and stimulating consumer demand through strategic pricing will be crucial for navigating a difficult market environment.

Retailers are cautiously optimistic that an upswing in sales could happen as a result of a drop in panel prices however the potential of further RBA rate rises is unsettling the market in Australia.

Technological advancements in OLED and MicroLED displays, coupled with improved picture quality and new innovative functionalities, could reignite consumer interest if the new models are seen as being of value.