After seven months of market downturn, color TV retail sales finally showed signs of recovery in August. According to data monitored by Ovid Cloud, during the "8·18" promotional period, domestic color TV sales surged by 66% year-on-year, while revenue jumped by 102%. This unexpected rebound brought some relief to TV manufacturers, whose net profits had hit rock bottom.
Industry experts believe that as panel prices stabilize and correct, the profitability of color TV businesses is expected to improve. However, with the overall market still weak this year and a high base from last year's figures, the upcoming "11" Golden Week promotions may yield positive results, but year-on-year sales growth could remain challenging.
The decline in the domestic color TV market has been driven by rising panel prices, shrinking internet-driven consumer benefits, and early demand overdrawn. In the first half of the year, China’s color TV retail sales dropped by 7.3% compared to the same period last year, and the industry’s net profit margin remained below 1%. Sales continued to fall in July, and TV companies remained cautious about panel purchases.
“From April last year to June this year, panel prices rose by an average of around 40%, while TV set prices increased by less than 20%. Panel manufacturers have benefited, but TV makers are struggling,†said Cui Jilong, Deputy Director of the Display Industry Chain Research Division at Ovid Cloud. He added that reduced shipments and panel purchases have led to a surplus of panels, causing prices to drop after June.
Looking ahead, with new production capacity coming online and phased adjustments in demand from TV manufacturers, panel supply will remain abundant, and prices are expected to continue declining steadily.
According to Ovid Cloud’s forecast, large-size panel prices are also expected to drop significantly in October.
“Although panel prices have started to fall, cost pressures on companies have eased, but a price war in the TV market won’t flare up again in the short term. Instead, innovative products like OLED TVs and quantum dot TVs are likely to take center stage in the upcoming “11†promotions,†Cui Jilong noted.
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