Will TVs get more expensive before Black Friday?! Chinese manufacturers are raising panel prices

People planning to buy a TV in the coming months may have another reason to watch prices more closely. The three largest LCD panel manufacturers, BOE, TCL CSOT and HKC, have informed their customers of price increases. Among the buyers are 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, will introduce new prices starting in the fourth quarter, that is, in October. Manufacturers did not disclose by how much prices for individual panels will increase. The timing is particularly important because TV makers are building inventory for Black Friday and the holidays. Cutting back orders during this period may be harder for them, since higher panel costs could be partially reflected in prices of finished devices. That does not, however, mean every TV will automatically become more expensive.

China has growing control over LCD

A shift in market power is also behind this. Samsung Display and LG Display have pulled out of TV LCD panel production, and Chinese firms have taken over much 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 TVs.

OLEDs are heading in a different direction

The situation in the OLED market looks completely different. While LCD TV makers are facing rising costs, OLEDs appear to be moving the other way. LG Display is producing cheaper OLED panels this year and is working to bring their production costs even lower in the future. Thanks to this development, panels that are still considered fairly expensive may become increasingly affordable and thus reach a much wider audience.

For buyers, the most important question will be whether higher production costs are passed on to them. So far there is no basis for assuming a specific scale for such price increases. It’s worth monitoring prices now, especially if you plan to buy on Black Friday.

Sources: FlatpanelsHD, The Elec