Panel capacity is oversupply again TV prices are about to dive

Although the sluggish capacity and performance are the norm in the color TV market in recent years, the situation in 2017 is particularly severe. Affected by the continuous rise of LCD panels (panel costs accounted for more than 65% of the total cost), China's color TV retail sales in 2017 decreased by 6.6% year-on-year, the largest drop since 2003.
At present, the price of TV panels has fallen to or close to the historical low point of the previous wave of price cut cycles in 2016, and Ovid Cloud expects prices to continue dropping in June of this year. Everything seems to indicate that the entire manufacturer has ushered in a turning point in operating pressure. Is this really the case?
In fact, TV panel prices have fallen for three consecutive quarters since the end of the second quarter of 2017, but some panel makers have not reduced their capacity. In addition, panel makers’ enthusiasm for investing in high-generation production lines is still rising, and mainland panel giant BOE has built two 10.5-generation large-size LCD production lines in Hefei and Wuhan to accelerate the release of production capacity.
In the short term, the demand for TVs in the whole world, including China, has not been effectively increased. Therefore, after the “World Cup” stocking of the whole machine plant came to an end in April of this year, the oversupply of panels has become more severe, which has accelerated the decline in panel prices.
This round of price reduction covers the major size of the panel. According to forecast data released this month by Ovey Cloud Network, in May 2018, 32-inch, 40-inch, 49-50-inch panel prices will fall by 2 US dollars, 43-inch panel prices will drop by 4 US dollars, 55-inch panel prices will continue Drops, even oversized 65-inch panels are no exception.

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