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People planning to buy a TV in the coming months may have yet another reason to keep a closer eye on prices. The three largest LCD panel manufacturers, BOE, TCL CSOT and HKC, have informed their customers of price increases. Their customers are reported to include Samsung, LG and Sony.
More expensive panels before the shopping season
According to industry sources, TCL CSOT and HKC began raising prices for selected panels as early as September. BOE, meanwhile, is set to introduce new prices from the fourth quarter, that is October. Manufacturers have not disclosed by how much prices for particular panels will rise. The timing is especially important because television manufacturers are building up stock for Black Friday and the holidays. Reducing orders during this period may be harder for them, as higher panel costs could be partly reflected in the prices of finished products. However, this does not mean every TV will automatically become more expensive.
China is gaining greater control over LCD
The whole situation is also driven by a shift in market forces. Samsung Display and LG Display have withdrawn from producing television LCD panels, and Chinese companies have taken over a large share of that market. According to data cited by Omdia, BOE, TCL CSOT and HKC together account for about 70 to 85% of panel shipments for 65-, 75- and 85-inch televisions.
OLEDs are heading in a different direction
The situation in the OLED market is entirely different. While LCD TV manufacturers are facing rising costs, OLEDs are heading in the opposite direction. LG Display is producing cheaper OLED panels this year and is working to reduce their production costs even further in the future. Thanks to this development, panels that are still regarded as quite expensive could become increasingly affordable and thus reach a much wider audience.
For buyers, the most important thing will therefore be whether the higher production costs are passed on to them. At present there is no basis for assuming a specific scale of such price rises. It is worth keeping an eye on prices now, especially if we are planning to make the purchase on Black Friday.
Sources: FlatpanelsHD, The Elec
