"For the first time, Shenzhen panel distributors have halted quotations and stopped receiving orders on a large scale. At present, at least five panel distributors in Shenzhen have issued relevant messages. Among them, the CYD price adjustment notice pointed out that the supplier’s motherboard and display screen , Touch panels have continued to increase in price, but are still severely out of stock. Oral orders will not be accepted from now on, and the full payment shall prevail." Affected by the epidemic, the new “home economy” triggers screen displays on TVs, laptops, tablets, and mobile phones The rising demand for panels caused by strong equipment demand has already swept all levels of the technology industry.
Statistics show that during the National Day holiday in 2020, the average price of 32-inch, 50-inch, and 55-inch TV products for small and medium-sized TV products has increased by more than 10% compared to the 618 in June 2020. rise. In the TV market that has been in a price war for two years, there has been a price increase. What we see is not the affordable price of the 618 promotion, but from the TV products whose panel prices account for more than 60% of the cost, we see the tide of display panel price increases. Menacing.
The price increase of the TV category is not an exception. It is a market-oriented reflection of the price adjustment of upstream display panels. Monitors, tablets, notebooks, and even smart phones have been affected and affected by multi-dimensional uncertain factors. The general industry rise may continue until January next year.
There are three main factors affecting panel prices: panel manufacturers' capacity supply, panel upstream components supply, and changes in downstream market demand.
Korean panel factories shut down LCD production capacity, LCD panel prices start to rise
Taking TV panels as an example, if we count from the beginning of the price increase cycle in June, the current mainstream 55-inch LCD panel prices have increased by more than 40%, 32-inch LCD panels have increased by more than 70%, even the smaller 65-inch LCD panel. The above size also has an increase of 30 dollars per piece.
Affected by the shutdown of LCD panel production capacity by upstream Korean panel manufacturers, global LCD panel supply has begun to appear in short supply, and for the year-end sales peaks (11, Double 11, Black Friday, Double Day, Spring Festival) ), TV manufacturers obviously need to increase production capacity in advance to stock up. With the global epidemic, the demand for panel purchases has begun to rise sharply, and the situation of short supply has begun to form, and the price of LCD TV panels has begun to rise.
The unacceptable price increase has continued to this day. The market research agency Ovi Ruiwo report pointed out that although the price increase of TV LCD panels in November has narrowed, it will continue to increase, and the price of 32-inch to 75-inch TV LCD panels will rise. Between US$3 and US$8.
Mobile phone components are more profitable, leading to a shortage of TV IC supply
The emergence of the 5G market made the upstream fabs laugh together, especially the iPhone12's support for 5G, which completely detonated this trend. When more profitable mobile phone IC orders are in hand, will you still insist on making flat-profit TV ICs?
According to the insiders of Huaxing Optoelectronics, the current supply chain of LCD panels for TV is the most tight supply of circuit ICs, which has troubled TV panel shipments, and no relief can be seen in a short time.
Retaliatory consumption detonates the global market and intensifies the price rise
After the global epidemic is gradually brought under control in the second half of the year, market demand has clearly risen. As the main battlefield of the global TV industry, major TV brands have stepped up their offensives in the international market while taking into account the domestic market. Therefore, panel demand has increased rapidly. .
More importantly, under the suppression of the epidemic, the market performance in the first half of 2020 was bleak. Some companies urgently need to cater to market changes and transfusion for the full-year performance, and some companies hope to gain more market share through the market turbulence this year. According to insiders of Huaxing Optoelectronics, due to market demand exceeding expectations, TV brand companies hope to seize the opportunity to expand market share, and even doublebooking will occur, which will further increase the demand for panel production capacity.
The price of TV panels account for more than 60% of the cost of TVs, so they are more sensitive to panel price changes. This is a good example to illustrate the relationship between supply and demand, but LCD panels used in monitors, notebooks, and tablets are basically similar. , Even the more profitable LCD panels for smartphones are currently facing a serious shortage of supply and soaring unit prices.
It can be said that this LCD panel price increase has basically swept the entire category of the market. As a strategic material of the modern technology industry, the price increase of display panels means price adjustments in the mid-end of the product. Therefore, in the upcoming double 11, if you encounter Just place an order for your favorite TVs, notebooks, monitors, tablets, smart phones, etc., because we have learned from industry professionals that this wave of display panel price increases is expected to continue until the first quarter of next year. Even in the second quarter, panel prices will continue to remain high.
