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People planning to buy a TV in the coming months may have another reason to keep a closer eye on prices. The three largest LCD panel makers, BOE, TCL CSOT and HKC, have notified their customers of price increases. Among their customers are reportedly Samsung, LG and Sony.
More expensive panels ahead of the shopping season
According to industry sources, TCL CSOT and HKC began raising prices on selected panels as early as September. BOE, meanwhile, is set to introduce new prices in the fourth quarter, from October. Manufacturers have not disclosed exactly how much prices for individual panels will rise. The timing is particularly important because TV makers are building up inventory for Black Friday and the holiday season. Cutting back on orders during this period may be harder for them, as higher panel costs could be partially reflected in the prices of finished TV sets. That does not mean, however, that every TV will automatically get more expensive.
China has increasing control over LCD
This is also driven by a shift in market forces. Samsung Display and LG Display have withdrawn from producing LCD panels for TVs, and Chinese companies have taken over a large part of that market. According to data cited by Omdia, BOE, TCL CSOT and HKC together account for around 70 to 85% of panel shipments for 65, 75 and 85 inch TVs.
OLEDs are heading in a different direction
The situation in the OLED market looks completely different. While LCD TV manufacturers are facing rising costs, OLEDs are expected to move the other way. LG Display is producing cheaper OLED panels this year and is working to further reduce their production costs in the future. Thanks to this development, panels, still considered fairly expensive, may become increasingly affordable and thus reach a much wider audience.
What will matter most to buyers, then, is whether higher production costs are passed on to them. For now there's no reason to assume any particular scale for such price rises. It's worth keeping an eye on prices now, especially if you're planning to buy on Black Friday.
Sources: FlatpanelsHD, The Elec
