At present, the global IC shortage problem is serious, and the situation is still spreading. The affected industries includes mobile phone manufacturers, automobile manufacturers and PC manufacturers, etc.
The data showed that TV prices rose 34.9 percent year on year, CCTV reported. Due to the shortage of chips, LCD panel prices have increased, resulting in not only the price increase of TV sets, but also a serious shortage of goods.
In addition, the prices of many brands of TELEVISIONS and monitors have risen by hundreds of RMB since the beginning of the year on e-commerce shopping platforms. The owner of a TV manufacturer in Kunshan, Jiangsu province, said LCD panels accounted for more than 70 percent of the cost of a TV set. Since April last year, the price of LCD panels began to rise, so enterprises can only raise the price of products to ease the operating pressure.
It is reported that due to the epidemic, the demand for TVs, laptops and tablet devices in overseas markets is very strong, which leads to the shortage of LCD panels and the increase in prices. As of June 2021, the purchase price of small and medium sized panels 55 inches and below has increased by more than 90% year-over-year, with 55-inch, 43-inch and 32-inch panels up 97.3%, 98.6% and 151.4% year-over-year. It is worth mentioning that the shortage of raw materials for many LCD panels has also exacerbated the contradiction between supply and demand. Many experts expect the semiconductor shortage to last for more than a year and could lead to a reclassification of the global chip manufacturing landscape.
“Anything with a screen built in is going to be affected by these price increases. This includes PC-makers, which can avoid raising prices by selling their devices at the same price, but in other ways simplify them, such as with less memory” said Paul Gagnon, senior director of research for consumer devices at analytics firm Omdia.
We have seen a massive increase in the price of LCD TVs, and a further increase in the price of LCD panels, so how should we look at this? Are TVs going to get more expensive as well?
Firstly, let’s look at it from a market supply point of view. Affected by the worldwide shortage of chips, the entire chip-related industry will have a relatively obvious impact, at the beginning of the impact may be mobile phones and computers and other industries, these directly applied to chips, especially the high-tech chip industry, then began to be other derivative industries, and the LCD panel is actually one of them.
A lot of people think the LCD panel is not a monitor? Why do we need a chip?
But in fact, the LCD panel does need to use chips in the production process, so the core of the LCD panel is also a chip, so in the case of a shortage of chips, the output of LCD panels will indeed appear more obvious impact, which is why we see a significant increase in the price of LCD panels.
Secondly, let’s look at the demand, since the epidemic outbreak started last year, demand for TVs, laptops and tablet devices has actually been very high, on the one hand, a lot of people need to stay at home, so there is a significant increase in the demand for these daily consumer goods, which need to be used to kill time. On the other hand, many people need to work online and take classes online, which inevitably leads to a huge surge in demand for electronic products. Therefore, there will be a significant increase in the demand for LCD products. Then in the case of insufficient supply and massive increase in demand, the price of the whole market will inevitably become higher and higher.
Thirdly, what should we think about the current wave of price increases? Will it last? Objectively speaking, we can think that the current LCD TV and LCD panel prices may be difficult to appear in the short term correction trend, this is because the chip shortage all over the world is still continuing, and there may be no significant relief in a short time.
So under such circumstance, LCD TV will likely continue to rise in price. Fortunately, LCD panel products are not actually high frequency consumer goods. If the home LCD TV and other products can support the use, it might be wise to wait for a period of time, for a significant price reduction before buying.
Post time: Aug-19-2021