lcd panel price drop pricelist

The price of LCD display panels for TVs is still falling in November and is on the verge of falling back to the level at which it initially rose two years ago (in June 2020). Liu Yushi, a senior analyst at CINNO Research, told China State Grid reporters that the wave of “falling tide” may last until June this year. For related panel companies, after the performance surge in the past year, they will face pressure in 2022.

LCD display panel prices for TVs will remain at a high level throughout 2021 due to the high base of 13 consecutive months of increase, although the price of LCD display panels peaked in June last year and began to decline rapidly. Thanks to this, under the tight demand related to panel enterprises last year achieved substantial profit growth.

According to China State Grid, the annual revenue growth of major LCD display panel manufacturers in China (Shentianma A, TCL Technology, Peking Oriental A, Caihong Shares, Longteng Optoelectronics, AU, Inolux Optoelectronics, Hanyu Color Crystal) in 2021 is basically above double digits, and the net profit growth is also very obvious. Some small and medium-sized enterprises directly turn losses into profits. Leading enterprises such as BOE and TCL Technology more than doubled their net profit.

Take BOE as an example. According to the 2021 financial report released by BOE A, BOE achieved annual revenue of 219.31 billion yuan, with a year-on-year growth of 61.79%; Net profit attributable to shareholders of listed companies reached 25.831 billion yuan, up 412.96% year on year. “The growth is mainly due to the overall high economic performance of the panel industry throughout the year, and the acquisition of the CLP Panda Nanjing and Chengdu lines,” said Xu Tao, chief electronics analyst at Citic Securities.

In his opinion, as BOE dynamically optimizes its product structure, and its flexible OLED continues to enter the supply chain of major customers, BOE‘s market share as the panel leader is expected to increase further and extend to the Internet of Things, which is optimistic about the company’s development in the medium and long term.

TCL explained that the major reasons for the significant year-on-year growth in revenue and profit were the significant year-on-year growth of the company’s semiconductor display business shipment area, the average price of major products and product profitability, and the optimization of the business mix and customer structure further enhanced the contribution of product revenue.

“There are two main reasons for the ideal performance of domestic display panel enterprises.” A color TV industry analyst believes that, on the one hand, under the effect of the epidemic, the demand for color TV and other electronic products surges, and the upstream raw materials are in shortage, which leads to the short supply of the panel industry, the price rises, and the corporate profits increase accordingly. In addition, as Samsung and LG, the two-panel giants, gradually withdrew from the LCD panel field, they put most of their energy and funds into the OLED(organic light-emitting diode) display panel industry, resulting in a serious shortage of LCD display panels, which objectively benefited China’s local LCD display panel manufacturers such as BOE and TCL China Star Optoelectronics.

Liu Yushi analyzed to reporters that relevant TV panel enterprises made outstanding achievements in 2021, and panel price rise is a very important contributing factor. In addition, three enterprises, such as BOE(BOE), CSOT(TCL China Star Optoelectronics) and HKC(Huike), accounted for 55% of the total shipments of LCD TV panels in 2021. It will be further raised to 60% in the first quarter of 2022. In other words, “simultaneous release of production capacity, expand market share, rising volume and price” is also one of the main reasons for the growth of these enterprises. However, entering the low demand in 2022, LCD TV panel prices continue to fall, and there is some uncertainty about whether the relevant panel companies can continue to grow.

According to Media data, in February this year, the monthly revenue of global large LCD panels has been a double decline of 6.80% month-on-month and 6.18% year-on-year, reaching $6.089 billion. Among them, TCL China Star and AU large-size LCD panel revenue maintained year-on-year growth, while BOE, Innolux, and LG large-size LCD panel monthly revenue decreased by 16.83%, 14.10%, and 5.51% respectively.

Throughout Q1, according to WitsView data, the average LCD TV panel price has been close to or below the average cost, and cash cost level, among which 32-inch LCD TV panel prices are 4.03% and 5.06% below cash cost, respectively; The prices of 43 and 65 inch LCD TV panels are only 0.46% and 3.42% higher than the cash cost, respectively.

The market decline trend is continuing, the reporter queried Omdia, WitsView, Sigmaintel(group intelligence consulting), Oviriwo, CINNO Research, and other institutions regarding the latest forecast data, the analysis results show that the price of the TV LCD panels is expected to continue to decline in April. According to CINNO Research, for example, prices for 32 -, 43 – and 55-inch LCD TV panels in April are expected to fall $1- $3 per screen from March to $37, $65, and $100, respectively. Prices of 65 – and 75-inch LCD TV panels will drop by $8 per screen to $152 and $242, respectively.

“In the face of weak overall demand, major end brands requested panel factories to reduce purchase volumes in March due to high inventory pressure, which led to the continued decline in panel prices in April.” Beijing Di Xian Information Consulting Co., LTD. Vice general manager Yi Xianjing so analysis said.

“Since 2021, international logistics capacity continues to be tight, international customers have a long delivery cycle, some orders in the second half of the year were transferred to the first half of the year, pushing up the panel price in the first half of the year but also overdraft the demand in the second half of the year, resulting in the panel price began to decline from June last year,” Liu Yush told reporters, and the situation between Russia and Ukraine has suddenly escalated this year. It also further affected the recovery of demand in Europe, thus prolonging the downward trend in prices. Based on the current situation, Liu predicted that the bottom of TV panel prices will come in June 2022, but the inflection point will be delayed if further factors affect global demand and lead to additional cuts by brands.

With the price of TV panels falling to the cash cost line, in Liu’s opinion, some overseas production capacity with old equipment and poor profitability will gradually cut production. The corresponding profits of mainland panel manufacturers will inevitably be affected. However, due to the advantages in scale and cost, there is no urgent need for mainland panel manufacturers to reduce the dynamic rate. It is estimated that Q2’s dynamic level is only 3%-4% lower than Q1’s. “We don’t have much room to switch production because the prices of IT panels are dropping rapidly.”

Ovirivo analysts also pointed out that the current TV panel factory shipment pressure and inventory pressure may increase. “In the first quarter, the production line activity rate is at a high level, and the panel factory has entered the stage of loss. If the capacity is not adjusted, the panel factory will face the pressure of further decline in panel prices and increased losses.”

In the first quarter of this year, the retail volume of China’s color TV market was 9.03 million units, down 8.8% year on year. Retail sales totaled 28 billion yuan, down 10.1 percent year on year. Under the situation of volume drop, the industry expects this year color TV manufacturers will also set off a new round of LCD display panel prices war.

LCD TV panel prices have stopped falling after sliding below suppliers" cash-cost levels, according to industry sources. Additionally, aggressive production cuts by panel makers also have helped bring a stop to falling prices.

According to Pan Tai-chi, general manager of the TV Business Center of Innolux, TV panel inventories at most TV vendors and channel operators have bottomed out, and correspondent TV panel prices have risen since the second half of October.

Sales dynamics for TVs and monitors with high CP (cost-performance) ratios have started gaining momentum recently as current panel prices have made high CP display products more affordable, Pan said.

It was the supply side that drove the recent price hikes instead of being pushed up by increasing demand, Pan noted, noting that the price increases will sustain for a more extended period only when demand is solid enough to soak up the output.

It is worth observing whether the sales of consumer electronics products during the forthcoming year-end shopping season in China, the US and Europe are robust enough to stir up panel demand in the first quarter of 2023, Pan commented.

LCD TV panel prices have reached all-time lows but they continue to decline, and although the pace of decline is slowing in the third quarter, we now forecast that the industry will have an “L-shaped” recovery in the fourth quarter. In other words, no recovery at all until 2023. The ‘perfect storm’ of a continued oversupply, near-universally weak demand and excessive inventory throughout the supply chain has combined, and every screen size of TV panel has reached an all-time low price. Although fab utilization has slowed sharply in July, we do not see any signal to suggest that prices can increase any time soon.

After the two months with the fastest price declines in the history of the industry in September and October, LCD TV panel prices continued to fall in November, but the pace of price decreases is slowing, and we expect that pattern to continue into 2022. After two months where the average decline in LCD TV panel prices exceeded 15%, the average decline in November among the seven TV sizes we track was “only” 6.4%. LCD TV panel prices have now lost most of the gains that they achieved in the long up-cycle from May 2020 to June 2021.

In September, area prices for all screen sizes up to 65” fell in a range from $92 to $106 per square meter, with the 65” area price tied with 32” for the lowest in the industry at $92 per square meter. The largest screen size in our survey, 75” panels, continues to have a premium but that premium has eroded steadily. In June 2022, a 75” panel was priced at $144 per square meter, a $41 or 40% premium over the 32” area price. By September, the 75” premium over 32” had dropped to $27 and 29%. While prices for 65” and smaller panels increased in October, 75” prices stayed flat, and we expect that pattern to continue through Q4 and Q1.

Throughout the many cycles in the industry, we have seen that the most commoditized screen size is 32”, because this screen size can be efficiently produced on every Gen size fab from Gen 6 through Gen 10.5. Thus, when prices go down, 32” prices go down fastest, but when prices increase, the 32” price increase fastest as well. This was true in October as 32” prices increased by $2 or 7% for the month; the area price increased from $92 per square meter in September to $99 in October.

The next chart shows our estimates of cash costs vs. panel prices for large TV panels. While 55” panels have been below cash costs for most of the year, 65” prices reached cash costs in Q2 and for the first time 75” panel prices fell below cash costs in Q3. We expect that 55” and 65” panel prices will increase in Q4 and Q1 2023 but will remain slightly below cash costs.

Prices for all TV panel sizes fluctuated and are forecast to fluctuate between 2020 and 2022. The period from March 2020 to July 2021 saw the biggest price increases, when a 65" UHD panel cost between 171 and 288 U.S. dollars. In the fourth quarter of 2021, such prices fell and are expected to drop to an even lower amount by March 2022.Read moreLCD TV panel prices worldwide from January 2020 to March 2022, by size(in U.S. dollars)Characteristic32" HD43" FHD49"/50" UHD55" UHD65" UHD------

DSCC. (January 10, 2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph]. In Statista. Retrieved February 22, 2023, from https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars)." Chart. January 10, 2022. Statista. Accessed February 22, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. (2022). LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars). Statista. Statista Inc.. Accessed: February 22, 2023. https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC. "Lcd Tv Panel Prices Worldwide from January 2020 to March 2022, by Size (in U.S. Dollars)." Statista, Statista Inc., 10 Jan 2022, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

DSCC, LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) Statista, https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/ (last visited February 22, 2023)

LCD TV panel prices worldwide from January 2020 to March 2022, by size (in U.S. dollars) [Graph], DSCC, January 10, 2022. [Online]. Available: https://www.statista.com/statistics/1288400/lcd-tv-panel-price-by-size/

There could be a welcome fall in the price of LCD TVs later this year, with panel prices continuing to drop according to a new report, and the effect of the supply chain crisis appearing to ease.

Tech analyst Sigmaintell Consulting (via DigiTimes(opens in new tab)) claims that LCD panel prices once again fell last month, with the price of 32-inch to 55-inch displays slipping a further $2-4 per panel and 65-inch and 75-inch models falling by $8-10 per unit.

The news follows on from similar supply-side price falls for LCD panels over the previous two months, and the trend has been downwards since late last year. We"ve seen already that some of the best TVs available today that use LCD panels have dropped prices in the last few months (such as the Samsung TV pictured above) – even brand new models have wasted no time in dropping from the official price.

Any LCD panels being bought to go straight into production would ship to stores as finished TVs in a few months time, so those price drops could come in time to trigger an especially juicy wave of major discounted TVs for consumers around Black Friday and Christmas.

The manufacture of LCD display tech has become increasingly dominated by China, amid South Korean panel makers withdrawing from the market and moving further towards OLED production.

Prolonged Covid lockdown restrictions in key Chinese tech manufacturing districts such as Wuhan, had however caused a major reduction in the scheduled global supply of panels, with global TV shipments predicted to fall to their lowest level since 2010, according to Market research firm Omdia.

The potential fall in panel pricing will come as timely news for those struggling amid rising costs of living – lots of people will avoid big expenditures such as a new TV, but if you need one, you need one. So we hope this means anyone buying will be able to find a good buy no matter their budget.

The price falls in the report look likely to impact the sticker price of smaller and budget entry level sets, which will hopefully mean that the people most affected by inflation rises will benefit the most from the discounts.

We should also note that lots of other factors will affect the final price of TVs, beyond just the price of the panels – shipping costs, for example. But the lower cost of parts might mean that prices won"t rise as much as they would otherwise, at least. It all helps.

Nikkei Asia reported on the 21st that the price of LCD panels for Smart TVs kept falling. Among the prices in June, that has been determined by panel manufacturers in China, Taiwan, South Korea, and TV manufacturer, the 55-inch Opencell price has decreased. The wholesale price of semi-finished products without backlight fell around 6 percent from May to around $90. The price has been declining for 11 consecutive months, continuing to rewrite the record low since the survey began in 2006.  The price of 32-inch products for small-size TVs also dropped by 15 percent, setting a new record low.

The report points out that the price of TV LCD panels will continue to fall. Apparently, one of the strong reasons is continuous inflation. The continuous inflation has been deeply engulfing the world. The continuous health concerns, and the war, are leading to a major slowdown in the economy. There are rising doubts about the demand for TVs as the customer’s needs are changing. For instance, people are now considering essential goodies rather than spending on electronics when they already have one. For example, one user with a good Smart TV will think twice before upgrading to a new model just because yes. If the old model is serving well, then there is no real reason to upgrade due to technological upgrades.

However, there is still hope for small TVs. According to reports, panel factories in mainland China are reportedly expanding the production of 32-inch LCD panels. In the past, 55-inch products were the main priority due to their higher profit margin. However, the 55-inch panels now sit in unsatisfactory market conditions. Therefore, the factories will expand the supply of small products. After all, these smart TVs are commercialized at lower prices. Furthermore, some users are willing to save money no matter the display’s size.

Samsung, which always has been a strong maker in the LCD business, is shutting down the division.The company will focus on OLED and upcoming technologies. However, we don’t know if the costlier OLED TVs are in a better situation.

The drip follows year-on-year increases in 2021 and 2020, which were 26% and 14%, respectively, due to increased demand for liquid crystal display (LCD) panels from the Covid-19 pandemic.

BOE dropped theirs from 65.5 million to 60 million; HKC dropped it from 49.5 million to 42 million; CSOT from 45 million to 44.8 million; and LG Display from 23.5 million to 18 million. Innolux’s also dropped theirs from 34.5 million to 34.6 million.

TrendForce’s latest research finds that TV brands’ promotional activities related to China’s Singles’ Day were helped by the steep decline in display panel prices. With panel prices reaching a very low level, TV brands were able to cut their prices further so as to raise shipments of whole TV sets during the promotional period. On the other hand, the major international brands have come into the second half of this year with a high level of inventory as their sales performances were weaker than expected during the first half. In order to effectively consume the existing inventory, TV brands have significantly corrected down the panel procurement quantity for 2H22. As a result, TrendForce now estimates that global TV shipments in 2H22 will reach 109 million units, reflecting a YoY decline of 2.7%. Global TV shipments during the whole 2022 are currently projected to total 202 million units, showing YoY decline of 3.9%. This annual shipment figure represents a decade low.

This year, the TV market has seen a continuous decline in shipments. Fortunately, there has also been a sharp drop in prices of large-sized panels. Furthermore, freight transportation costs have fallen by more than 50%. Thus, TV brands have been able to vigorously promote large-sized products, and the average size of TVs has also risen by 1.4 inches to 56 inches.

TrendForce further points out that moving into 2023, supply will remain fairly plentiful for TV panels. With the chance of a substantial rally in panel prices being extremely low, brands should feel an easing of cost pressure and have more flexibility when it comes to large-scale promotional activities. However, the IMF has downgraded its global economic growth forecast for 2023 to 2.7%. Moreover, the US, the Eurozone, and China as the world’s three largest regional economies will continue to experience stagnation. Regarding the ongoing inflation, it has recently started to ease a bit in Europe and the US, but the major regional consumer markets on the whole will continue be under its pressure. Because of these factors, TrendForce believes the growth momentum of TV shipments will be severely constrained next year. Global TV shipments are currently forecasted to again register a YoY decline for 2023, falling by 1.4% to 199 million units.

TV sales in China during this year have been noticeably affected by government measures for controlling local COVID-19 outbreaks. During this second half of the year, TV panel prices have fallen to a new record low, and brands have also been aggressively cutting prices so as to meet their annual shipments targets. However, despite all these, TV sales in China for the Singles’ Day period still fell nearly 10% YoY. Turning to the North America, TV sales there shrank by 16.5% YoY for 1H22 as the rapidly mounting inflationary pressure squeezed consumers’ budgets. Around that same time, TV brands also reached their limit in terms of inventory accumulation. To reduce the glut, brands conducted inventory check across all sections of their supply chains and made significant revisions to their procurement plans. Now, in 2H22, brands have been aggressively spurring demand. Full-scale promotional activities commenced on Amazon’s Prime Day, and TV sales were then ramped up to a peak on Black Friday. Among brands, TCL made the largest price concession for this year, cutting the price of its 55-inch Mini LED backlit model by 70% to US$199. Other brands also energetically promoted their particular product models in the holiday sales competition. On account of brands’ efforts, TV sales in North America for the Black Friday period rose by 13% YoY. While China and North America have exhibited very contrasting performances for the busy season, it is also clear that TV brands on the whole have gradually lowered their inventories to a relatively optimal level after months of promotional activities across channels and corrections to panel procurements.

Another notable development that TrendForce has observed in the TV market is the tepid performance of high-end products. Due to the lack of supporting broadcasting content and high retail prices, most TV brands have not been particularly keen on pushing 8K models. And after years of advocacy, Samsung remains the single dominant brand for 8K TVs with a market share almost 70%. Additionally, high inflation has eaten into consumers’ budgets this year. TrendForce therefore projects that 8K TV shipments will register a YoY decline for the first time in 2022, dropping by 7.4% to just about 400,000 units. It is also worth noting that Europe as one of the main sales regions for 8K TVs could be affected by the updated EU energy consumption labelling scheme (i.e., Energy Efficiency Index). Specifically, energy consumption rules have been further tightened so that some older 8K models could be banned from the region starting in March 2023. However, Samsung is planning to launch new 8K models that meet the updated energy consumption standards. Moreover, display panel suppliers continue to promote 8K products so as to widen adoption among TV brands. TrendForce currently forecasts that shipments of 8K TVs will surpass the 500,000 unit mark for 2023, registering a YoY growth of 20%.

TrendForce’s latest research on panel prices finds that LCD panel prices have plummeted. In fact, the price of a 55-inch UHD LCD was 4.8 times lower than the price of a WOLED (white OLED) O/C panel at the end of 3Q22. With the price difference between the two panels returning to where it was at the start of 2020, selling WOLED TVs have been quite challenging for brands that do offer this kind of product. Therefore, TrendForce estimates that shipments of WOLED TVs will shrink by 6.2% YoY to 6.29 million units for 2022. Assuming that LG Display does not want to sacrifice profitability, it will maintain a conservative pricing strategy when quoting WOLED panels next year. Given this situation, TrendForce forecasts that WOLED TV shipments will dip again by 2.7% YoY for 2023.

According to TrendForce, LCD TV panel quotations bore the brunt of continuous downgrades in the purchase volume of TV brands and pricing for most panel sizes have fallen to record lows. Recently, it was announced that the 32-inch and 43-inch panels fell by approximately US$5~US$6 in early June, 55-inch panels fell approximately US$7, and 65-inch and 75-inch panels are also facing overcapacity pressure, down US$12 to US$14. In order to alleviate pressure caused by price decline and inventory, panel makers are successively planning to initiate more significant production control in 3Q22. According to TrendForce’s latest research, overall LCD TV panel production capacity in 3Q22 will be reduced by 12% compared with original planning.

As Chinese panel makers account for nearly 66% of TV panel shipments, BOE, CSOT, and HKC are industry leaders. When there is an imbalance in supply and demand, a focus on strategic direction is prioritized.  According to TrendForce, TV panel production capacity of the three aforementioned companies in 3Q22 is expected to decrease by 15.8% compared with their original planning, and 2% compared with 2Q22. Taiwanese manufacturers account for nearly 20% of TV panel shipments so, under pressure from falling prices, allocation of production capacity is subject to dynamic adjustment. On the other hand, Korean factories have gradually shifted their focus to high-end products such as OLED, QDOLED, and QLED, and are backed by their own brands. However, in the face of continuing price drops, they too must maintain operations amenable to flexible production capacity adjustments.

TrendForce indicates, in order to reflect real demand, Chinese panel makers have successively reduced production capacity. However, facing a situation in which terminal demand has not improved, it may be difficult to reverse the decline of panel pricing in June. However, as TV sizes below 55 inches (inclusive) have fallen below their cash cost in May (which is seen as the last line of defense for panel makers) and is even flirting with the cost of materials, coupled with production capacity reduction from panel makers, the price of TV panels has a chance to bottom out at the end of June and be flat in July. However, demand for large sizes above 65 inches (inclusive) originates primarily from Korean brands. Due to weak terminal demand, TV brands revising their shipment targets for this year downward, and purchase volume in 3Q22 being significantly cut down, it is difficult to see a bottom for large-size panel pricing. TrendForce expects that, optimistically, this price decline may begin to dissipate month by month starting in June but supply has yet to reach equilibrium, so the price of large sizes above 65 inches (inclusive) will continue to decline in 3Q22.

TrendForce states, as panel makers plan to reduce production significantly, the price of TV panels below 55 inches (inclusive) is expected to remain flat in 3Q22. However, panel manufacturers cutting production in the traditional peak season also means that a disappointing 2H22 peak season is a foregone conclusion and it will not be easy for panel prices to reverse. However, it cannot be ruled out, as operating pressure grows, the number and scale of manufacturers participating in production reduction will expand further and it timeframe extended, enacting more effective suppression on the supply side, so as to accumulate greater momentum for a rebound in TV panel quotations.

The price of LCD TV panels continues to fall, and that could be welcome news for anyone who’s in the market to buy a new living room portal in time for the World Cup and the Christmas holidays.

A report this week from the analyst firm Sigmaintell Consulting revealed that LCD panel prices fell again last month, with the cost of 32-inch displays slipping by $2 per panel, and 55-inch units falling by $4 each. Meanwhile, 65-inch panels now cost $8 less, while 65-inch ones are $10 cheaper than they were a month ago.

The price of LCD TV panels has been sliding for months now, since the end of last year. That’s great for consumers of course, with the price of upper-end TVs that use LCD panels falling quite noticeably, including some of the newest models out this year.

Typically, LCD panels that are shipped out from the factory go straight into production once they reach their customer, and then end up in stores as finished TVs within just a few of months. As such, analysts believe the latest price drops will result in some steep discounts on LCD TV prices just before Christmas and Black Friday come around.

LCD display prices are falling because the market is becoming increasingly clogged with panels made by Chinese manufacturers, who’re able to make them more cheaply. Indeed, their competitiveness is so extreme that they have forced traditional South Korean display making giants such as Samsung Display and LG Display to withdraw from the market. Last month it was reported that Samsung will exit completely by the end of this month, while LG has drastically reduced its own production and is likely to quit altogether in the coming months.

There were fears that recent COVID-19 related lockdowns in China might push LCD prices back up again, however that didn"t happen, and with cities like Beijing and Shanghai now reopening, it’s expected that the downward price pressure will continue unabated, Sigmaintell Consulting said.

For anyone who’s struggling with the increased living costs that have resulted from higher inflation this year, the TV price drop will come as a welcome surprise. Many households have no doubt tried to avoid making big purchases such as a new TV, but if you need one then it becomes an almost essential buy. With any luck, people in that situation will soon be able to get their hands on a decent new box without breaking the bank.

In another ominous sign for global TV industry supply, both demand and prices for TV-sized LCD panels continue to fall at the same time, recent reports from two display market analysts revealed.

Display industry market analysts TrendForce and Omdia each issued potentially troubling LCD TV display panel business updates this week as the global economic outlook continues to impact discretionary spending for non-essential items like TV sets.

According to TrendForce, the outlook for purchases by TV makers of LCD TV display panels — the major component part for LCD-based TVs that represent the vast majority of the TV sets — continues to decline even as prices for most panel sizes have fallen to record lows.

Recently, it was announced that the 32-inch and 43-inch panels fell by approximately $5-$6 in early June, 55-inch panels fell approximately $7, and prices for 65-inch and 75-inch panels, which face mounting overcapacity pressure, were down $12 to $14, TrendForce said.

“In order to alleviate pressure caused by price decline and inventory, panel makers are successively planning to initiate more significant production control in [the third quarter of 2022],” TrendForce said. “..Overall LCD TV panel production capacity in [the third quarter] will be reduced by 12% compared with original planning.”

According Omdia prices for TV-sized LCD display panels have been falling for the first year since Covid-19 appeared, while the increase in display demand area is expected to be up just 3%, half of the previous year.

Similarly, Omdia’s forecast released Thursday showed global display sales this year would decrease by 15% from last year to $133.18 billion. That compares to the global display sales increases of 14% in 2020 and 26% in 2021 due to the surge in demand for LCD panels and TVs generated by lockdowns forced by the pandemic.

LCD TV panel sales this year are expected to drop by 32% from last year ($38.3 billion) to $25.8 billion, according to Omdia’s predictions. The LCD TV panel demand area is expected to increase by 2% this year from last year, but the panel price decline is large.

“When there is an imbalance in supply and demand, a focus on strategic direction is prioritized,” TrendForce said. “TV panel production capacity of the three aforementioned companies in [Q3 2022] is expected to decrease by 15.8% compared with their original planning, and 2% compared with [the second quarter.]

TrendForce said Taiwanese manufacturers account for nearly 20% of TV panel shipments, and allocation of production capacity among those factories is now subject to “dynamic adjustment.”

The firm said TV sizes 55 inches and below have “fallen below their cash cost in May (which is seen as the last line of defense for panel makers) and is even flirting with the cost of materials, coupled with production capacity reduction from panel makers, the price of TV panels has a chance to bottom out at the end of June and be flat in July.”

However, the firm said, optimistically, “this price decline may begin to dissipate month by month starting in June but supply has yet to reach equilibrium, so the price of large sizes [65 inches and above] will continue to decline in [the third quarter].”

TrendForce said that as panel makers continue to significant reduce production, the price of TV panels 55 inches and under is expected to remain flat in through the third quarter.

“Panel manufacturers cutting production in the traditional peak season also means that a disappointing [second half 2022] peak season is a foregone conclusion and it will not be easy for panel prices to reverse,” according to TrendForce.

It is possible that if the supply/pricing pressures continue, the number, scale and duration of manufacturers cutting panel production output will grow in an effort to generate momentum for a rebound in TV panel quotations, TrendForce said.

As reported by S. Korean technology trade news site The Elec, Omdia said the LCD TV panel shipment targets for BOE were lowered to 60 million units this year from the original 65.5 million units. HKC decreased its targets from 49.5 million to 42 million, CSOT from 45 to 44.8 million, and LG Display from 23.5 million to 18 million. Innolux’s shipment target increased slightly from 34.5 million units to 34.6 million units.

On the other hand, organic light emitting diode (OLED) TV panel sales this year are expected to reach $5.4 billion, up 12% from last year ($4.8 billion), according to Omdia.

OLED TV panels are being mass-produced by LG Display and Samsung Display, as both manufacturers reduce their exposure in LCDs. Samsung Display will end LCD TV panel production entirly this summer. However, LG Display’s OLED panel production forecast is 10 times that of Samsung Display.

Meanwhile, Samsung Display hiked yield rates for its new large-size QD-OLED panels from 30% of capacity initially, 50% in 2021, 75% in April-May 2022 to 80% now, according to South Korea-based publication The Bell.

TV (TV) sales are sluggish, but in order to ensure market share and supply continues to exceed demand, panel manufacturers have led to excess inventory in the supply chain, dragging down the price of LCD panels for TVs, and the price of indicator products has hit a new low in more than two years.

Nikkei reported on February 28 that TV sales were sluggish, but in order to ensure market share and supply continued to exceed demand, panel manufacturers led to excess inventory in the supply chain, which dragged down the price of

makers and TV makers in February, the wholesale price per unit of the benchmark product 55-inch Open cell (referring to semi-finished products without backlight) fell by 3% compared with the previous month (January) (down $3) to around $109, a new low since January 2020; the price of 32-inch products was unchanged from the previous month at around $39.

The price of LCD panels for TVs has been on the rise since June 2020, and has doubled in one year. However, due to the economic restart, consumption shifted to entertainment fields such as tourism and leisure, resulting in sluggish TV sales. There will be a sharp decline from the summer of 2021. A panel industry source said, "The panel fell faster than expected."

According to a survey by the US research firm DSCC, the global panel inventory index (the panel production area divided by the shipment area) was 107 at the end of March, higher than 100, which is considered to be the average inventory level, equivalent to three weeks more than the normal level of supply chain inventory. "As inventories increase, prices have fallen," said DSCC Asia representative Yoshio Tamura.

Large-area TFT LCD panel shipments decreased by 10% Month on Month (MoM) and 5% Year on Year (YoY) in April, to 74.1million units, representing historically low shipment performance since May 2020. Omdia defines large-area TFT LCD displays as larger than 9 inches.

"With continued ramifications from the pandemic, demand for IT panels for monitors and notebook PCs remained strong in 4Q21. But as the market became saturated starting in 2022, IT panel shipments started slowing in 1Q22 and early 2Q22," said Robin Wu, Principal Analyst for Large Area Display & Production, Omdia.

Wu said that notebook panel shipments decreased 21% MoM in April, to 18.2 million units, or a 33% decrease from a peak of 27.3 million units in November 2021.

While TV panel prices have decreased noticeably since 3Q21, TV LCD panel shipments increased to a peak of 23.4 million in December 2021, driven by low prices. But rising inflation, the Ukraine crisis and continued lockdowns in China have slowed demand. As a result, TV panel shipments posted a 9% MoM decline in April, to 21.7million units.

Many TV panel prices have fallen below manufacturing cost, and panel makers began to lose money in their TV panel business starting in 4Q21. But Chinese panel makers, the biggest capacity owners, still haven"t reduced their fab utilization. With no sign of demand recovery in 2Q22 or even 3Q22, the supply/demand situation is unlikely to see improvement, Wu said.

"IT LCD panels could still deliver positive cash flow for panel makers. But with prices dropping dramatically, panel makers will soon start to lose money in their IT panel business," Wu said. "Maybe only then will panel makers reduce their glass input and the overall supply/demand situation will return to balance."