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TV Panel Prices To Weaken In 4Q18

Sep 18, 2018

With the exception of some individual sizes, prices of most sizes of TV panels remain stable in September, but are to face downward pressure in the fourth quarter due to weakening demand from TV brands, according to industry sources.

TV vendors have slowed down the pace of the inventory build-ups following relatively strong sales in the first half, driven by sharp reductions in panel prices, said the sources.

Global TV shipments reached 172.2 million units in the first half of 2018, increasing 8.1% from a year earlier, according to data compiled by China-based Sigmaintell.

However, due to drastic changes in global economic structure and relatively strong sales in the first half, global TV shipments are likely to edge up a mere 3.4% on year in the third quarter and are likely to decline in the fourth quarter, said the market research firm.

China-based TV vendors have been reducing their purchases of TV panels since August, while other international brands such as Samsung Electronics has begun to cut their procurements in September, said Sigmaintell, which added that the purchase of TV panels by brand vendors will edge up 6% sequentially but down 0.8% on year in the third quarter of 2018.

For individual sizes of TV panels, 32-inch panels will stop climbing in September and are expected to stabilize at around US$56 per units. And 40-inch panels will settle at US$79, while 43-inch models will continue to edge up by US$2 to US$93.

Meanwhile, prices of 55- and 65-inch 4K panels will remain stable at US$157 and US$245, respectively, in September.