This year, the price of TV panels, which had been steadily rising, has halted its upward trend for the first time in five months. This is due to a decline in demand from China, one of the world's largest TV markets. Amid increasing burdens on corporations from tariffs originating from the Trump administration, it has been analyzed that domestic TV manufacturers, such as Samsung Electronics and LG Electronics, have alleviated cost pressures as panel prices stabilize.
According to market research firm Omdia on the 17th, the price of liquid crystal display (LCD) TV panels, which account for 90% of the global TV market, has been rising continuously since the end of last year but has stabilized in April this year. In particular, the average price of the 65-inch LCD TV panel, which is in high demand, rose from $172 in December last year to $178 in March this year, but has been frozen this month. The average price of the 55-inch panel also rose from $126 in December last year to $130 in March this year and has shown a stable trend.
The decline in panel prices is attributed to the slowdown in demand from China. Since September last year, the Chinese government has implemented the 'Igu Huanxin' policy, providing subsidies of 15-20% for energy-efficient appliances to stimulate the economy. As a result, TV demand surged, but over time, the buying enthusiasm has cooled. Additionally, TV manufacturers have been rushing to buy panels since the end of last year in preparation for the threat of U.S. tariffs, resulting in strong panel prices until the first quarter of this year. However, starting from the second quarter, the panel shipment volume is expected to decrease, leading to a downward trend in prices.
With the stabilization of LCD TV panel prices, predictions suggest that domestic TV manufacturers' burden of materials and supplies will be somewhat alleviated. Samsung Electronics and LG Electronics have been suffering from cost pressures due to rising panel prices without being able to benefit from the subsidies under China's Igu Huanxin policy. In the patriotic consumer market of China, even if TV demand increases, consumption remains centered on domestic brands. In fact, the market share of Samsung Electronics and LG Electronics in China is less than 2%. In an earnings conference call last October, LG Electronics stated that "the continued burden of rising LCD panel prices has decreased the profitability of the TV business."
A source in the TV industry noted, "It is a welcome development that the rise in LCD TV panel prices, which has significantly increased compared to the previous year, has stopped at a time when the burden of raw materials has been growing over several quarters. Given that we have no choice but to import all LCD panels for TVs from China, we are closely monitoring production adjustments by Chinese panel manufacturers and demand fluctuations due to U.S. tariffs."
In the future, panel prices are expected to be influenced by the repercussions of U.S. tariffs. This is because the possibility of shrinking global TV demand cannot be ruled out. TrendForce's deputy director of research, Pan Bowe, stated, "With the decrease in Chinese demand coupled with the uncertainty surrounding U.S. tariffs, it is unlikely that TV panel prices will rise further in the immediate term," adding that "some brands have temporarily halted orders for finished goods due to uncertainty regarding tariff developments, which could also worsen overall TV market demand."