Last week, the newspaper’s report on panel price increases in August caught the attention of the industry. According to the latest survey data published by Yikang, global panel prices have bottomed out since the second quarter of this year. Including BOE, Innolux, AUO and other panel companies, the market has obviously recovered since the second quarter, and the supply of products is in short supply.
The rising price of the upstream panel is bound to cause a chain reaction of the downstream terminal's overall price increase. Since the Internet brand TV hits the “low price†strategy, and the panel price accounts for more than 70% of the overall price, the panel price increase may make this strategy unsustainable.
Supply demand hit bottom in the first half
Panel prices have entered a continuous decline since last year – taking the 32-inch panel as an example, the average price of the 32-inch panel in May 2015 was 87 US dollars. By the beginning of 2016, the average price fell by nearly 60%. This situation began to improve in the second quarter of this year. Statistics from China Yikang show that since March this year, the prices of LCD panels have continued to rise, and the price of panel prices has reached 68 US dollars in August. The prices of other size products are also rising.
At the same time, BOE, Innolux, AUO and other manufacturers have also declared that the market has clearly recovered since the second quarter, and the situation of supply exceeds demand. Allegedly, some parts of the supply and demand will face tension, especially the supply of 32-inch panels will be very tight, 48-inch to 55-inch segment of the supply will also face tension.
"Jinjiuyinshi" is the traditional sales season of color TV sets. From the 818 sales promotion of e-commerce, the Mid-Autumn Festival holiday, to the next 11 Golden Weeks, the main players in the sales are color TV sets. And then the stocks in Europe and America in the end of the season also began to warm, that is, the supply of panel upstream in the second half of this year is tight, and the demand for color TV terminals is substantially increased. Zhong Yikang’s total data show that retail sales of 48-inch to 49-inch TVs increased by 11.1% year-on-year in the first half of the year, and 55-inch retail sales increased by 83.4% year-on-year.
Peng Xiandong, general manager of China Blackcom's black-and-white division, told reporters that in March this year, the 40-inch 4K panel price remained at 79 US dollars, and by August, the price had soared to 100 US dollars. Among them, there are two major factors: First, Samsung is about to shut down the main production of 40-inch 7th generation line, leading to the supply of 40-inch panel facing tension. The second is that 65 inches is the high growth size of this year, and China Yikang predicts that its retail volume in the second half of the year is expected to reach 2.5 million units. With the increase in the demand for 65-inch panels, Taiwan Plant will increase the production of this size, which will inevitably lead to reduced supply of other panels.
Will not directly increase the price of the manufacturer or the opportunity to upgrade the structure
In view of panel price hikes, TV manufacturers including Konka, TCL, etc. have started to move. A color TV dealer told reporters that at present has received a brand called for advance stocking notice, "now ordering, stocking can be insured before and after the Spring Festival." Another store in an interview with reporters that due to the long-term price war and the previous panel decline in price For the reason, color TV prices have not been able to rise and are basically unprofitable. As the panel cost accounts for a high proportion in the total cost of TVs, the panel prices are now rising. “Color TV providers do not want to increase prices.â€
According to statistics, in the first half of this year, the overall price of color TVs dropped by an average of 10% year-on-year, and manufacturers’ sources stated that “selling color TVs is not as good as selling cabbage.†Liu Buchen, an industry observer, told reporters that color TV prices will increase in the second half of the year. Although prices are difficult to return to the same level of the same period of last year, the price of color TVs will increase in the first half of 2016. He pointed out that color TV manufacturers should not adopt a direct price increase model, but by adjusting the product structure to upgrade the opportunity to increase the proportion of 4K, smart and other high-end TVs, or to increase pricing when pushing new products.
In fact, the newly-launched new color TVs have recently included high-profile, high-priced products. Last week (August 1 to 7) in the new products monitored by Yikang, the average price of a 40-inch 4K new product of a traditional brand is 2,999 yuan, and the average unit price of a 40-inch product is nearly 1,000 yuan.
Internet TV brand may face reshuffle
While the pressure of panel price increases is transmitted to the entire enterprise, the Internet brands will be the most affected. At present, the relatively large increase in panel prices is small and medium size, such as 40 inches and 43 inches. Most of the internet brand's product lines cover these two sizes, and 40 inches or 43 inches is the main size of some brands.
People in the industry believe that although Internet brands do not rely on hardware to make profits, they are pursuing “micro profitâ€, “zero profitâ€, and “negative profit†on prices. However, the pressure brought about by rising costs at the supply chain side is indeed not small. In particular, for Internet brands whose content monetization model is not yet mature, the above two dimensions, no matter which size is hit with a low price of 999 yuan, will bring internal injuries. If the content is not profitable, the low-cost model of Internet brands will be difficult to maintain and even face reshuffle.
Industry voice
Panel industry chain ushered in climbing stage R & D strength will become a turning point for enterprises
Although the panel industry chain has obviously recovered since the second quarter, the global panel industry is still hardly optimistic. The overall turmoil in the panel industry also spread to the upstream flexible circuit board area. Li Xiaohua, the leading company in this field, Lida Electronics, the chairman of Shangda Electronics, bluntly stated in an interview with the media that the global panel industry is currently in a “U-shaped†development zone. The downturn is basically near the end, and the panel industry chain will usher in a more difficult climb.
Li Xiaohua said that the panel industry itself is undergoing a new round of upgrading and new technologies, new products and new requirements will be developed, which will drive a new wave of leapfrog growth in the panel industry and related fields. But before that, companies in the panel industry and related fields must take precautions and make preparations before the market dividend comes.
He believes that this round of upgrading is particularly important for Chinese companies and is a once-in-a-lifetime opportunity for Chinese companies to reverse the situation in the industrial value chain. “The labor-intensive era is gradually being replaced by an era of capital and technology. Chinese enterprises must seize this round of transformation and upgrading, and enter the high-end and even the top of the industrial value chain. It is necessary to achieve breakthroughs in technological R&D and innovation in advance.â€
Li Xiaohua said that the electronic manufacturing industry is a high-tech, high-talented industry in one industry, from the industrial process of Japan and South Korea can be seen, the core technology is the key to the company's foothold. "While the road to mastering core technologies is not good, short-term R&D investment is indeed negatively related to corporate profits. However, in the long run, R & D strength is the cornerstone of the company's future growth and the turning point for its development. It is also the best way for the company to increase its added value. â€
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.
The rising price of the upstream panel is bound to cause a chain reaction of the downstream terminal's overall price increase. Since the Internet brand TV hits the “low price†strategy, and the panel price accounts for more than 70% of the overall price, the panel price increase may make this strategy unsustainable.
Supply demand hit bottom in the first half
Panel prices have entered a continuous decline since last year – taking the 32-inch panel as an example, the average price of the 32-inch panel in May 2015 was 87 US dollars. By the beginning of 2016, the average price fell by nearly 60%. This situation began to improve in the second quarter of this year. Statistics from China Yikang show that since March this year, the prices of LCD panels have continued to rise, and the price of panel prices has reached 68 US dollars in August. The prices of other size products are also rising.
At the same time, BOE, Innolux, AUO and other manufacturers have also declared that the market has clearly recovered since the second quarter, and the situation of supply exceeds demand. Allegedly, some parts of the supply and demand will face tension, especially the supply of 32-inch panels will be very tight, 48-inch to 55-inch segment of the supply will also face tension.
"Jinjiuyinshi" is the traditional sales season of color TV sets. From the 818 sales promotion of e-commerce, the Mid-Autumn Festival holiday, to the next 11 Golden Weeks, the main players in the sales are color TV sets. And then the stocks in Europe and America in the end of the season also began to warm, that is, the supply of panel upstream in the second half of this year is tight, and the demand for color TV terminals is substantially increased. Zhong Yikang’s total data show that retail sales of 48-inch to 49-inch TVs increased by 11.1% year-on-year in the first half of the year, and 55-inch retail sales increased by 83.4% year-on-year.
Peng Xiandong, general manager of China Blackcom's black-and-white division, told reporters that in March this year, the 40-inch 4K panel price remained at 79 US dollars, and by August, the price had soared to 100 US dollars. Among them, there are two major factors: First, Samsung is about to shut down the main production of 40-inch 7th generation line, leading to the supply of 40-inch panel facing tension. The second is that 65 inches is the high growth size of this year, and China Yikang predicts that its retail volume in the second half of the year is expected to reach 2.5 million units. With the increase in the demand for 65-inch panels, Taiwan Plant will increase the production of this size, which will inevitably lead to reduced supply of other panels.
Will not directly increase the price of the manufacturer or the opportunity to upgrade the structure
In view of panel price hikes, TV manufacturers including Konka, TCL, etc. have started to move. A color TV dealer told reporters that at present has received a brand called for advance stocking notice, "now ordering, stocking can be insured before and after the Spring Festival." Another store in an interview with reporters that due to the long-term price war and the previous panel decline in price For the reason, color TV prices have not been able to rise and are basically unprofitable. As the panel cost accounts for a high proportion in the total cost of TVs, the panel prices are now rising. “Color TV providers do not want to increase prices.â€
According to statistics, in the first half of this year, the overall price of color TVs dropped by an average of 10% year-on-year, and manufacturers’ sources stated that “selling color TVs is not as good as selling cabbage.†Liu Buchen, an industry observer, told reporters that color TV prices will increase in the second half of the year. Although prices are difficult to return to the same level of the same period of last year, the price of color TVs will increase in the first half of 2016. He pointed out that color TV manufacturers should not adopt a direct price increase model, but by adjusting the product structure to upgrade the opportunity to increase the proportion of 4K, smart and other high-end TVs, or to increase pricing when pushing new products.
In fact, the newly-launched new color TVs have recently included high-profile, high-priced products. Last week (August 1 to 7) in the new products monitored by Yikang, the average price of a 40-inch 4K new product of a traditional brand is 2,999 yuan, and the average unit price of a 40-inch product is nearly 1,000 yuan.
Internet TV brand may face reshuffle
While the pressure of panel price increases is transmitted to the entire enterprise, the Internet brands will be the most affected. At present, the relatively large increase in panel prices is small and medium size, such as 40 inches and 43 inches. Most of the internet brand's product lines cover these two sizes, and 40 inches or 43 inches is the main size of some brands.
People in the industry believe that although Internet brands do not rely on hardware to make profits, they are pursuing “micro profitâ€, “zero profitâ€, and “negative profit†on prices. However, the pressure brought about by rising costs at the supply chain side is indeed not small. In particular, for Internet brands whose content monetization model is not yet mature, the above two dimensions, no matter which size is hit with a low price of 999 yuan, will bring internal injuries. If the content is not profitable, the low-cost model of Internet brands will be difficult to maintain and even face reshuffle.
Industry voice
Panel industry chain ushered in climbing stage R & D strength will become a turning point for enterprises
Although the panel industry chain has obviously recovered since the second quarter, the global panel industry is still hardly optimistic. The overall turmoil in the panel industry also spread to the upstream flexible circuit board area. Li Xiaohua, the leading company in this field, Lida Electronics, the chairman of Shangda Electronics, bluntly stated in an interview with the media that the global panel industry is currently in a “U-shaped†development zone. The downturn is basically near the end, and the panel industry chain will usher in a more difficult climb.
Li Xiaohua said that the panel industry itself is undergoing a new round of upgrading and new technologies, new products and new requirements will be developed, which will drive a new wave of leapfrog growth in the panel industry and related fields. But before that, companies in the panel industry and related fields must take precautions and make preparations before the market dividend comes.
He believes that this round of upgrading is particularly important for Chinese companies and is a once-in-a-lifetime opportunity for Chinese companies to reverse the situation in the industrial value chain. “The labor-intensive era is gradually being replaced by an era of capital and technology. Chinese enterprises must seize this round of transformation and upgrading, and enter the high-end and even the top of the industrial value chain. It is necessary to achieve breakthroughs in technological R&D and innovation in advance.â€
Li Xiaohua said that the electronic manufacturing industry is a high-tech, high-talented industry in one industry, from the industrial process of Japan and South Korea can be seen, the core technology is the key to the company's foothold. "While the road to mastering core technologies is not good, short-term R&D investment is indeed negatively related to corporate profits. However, in the long run, R & D strength is the cornerstone of the company's future growth and the turning point for its development. It is also the best way for the company to increase its added value. â€
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.