After seven months of continuous 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 a glimmer of hope for TV manufacturers, whose net profits had hit rock bottom.
Industry experts believe that as TV panel prices stabilize and gradually decrease, the overall profitability of the color TV sector is expected to improve. However, with the broader market still weak this year and a high base from last year’s performance, it's unlikely that sales will see significant year-on-year growth during this year’s “11†Golden Week. Still, the promotions are expected to yield some positive results.
The domestic color TV market has been struggling due to rising panel prices, the fading benefits of online sales, and an early pull forward of consumer demand. In the first half of the year, China’s color TV retail sales fell by 7.3% compared to the same period last year, and the industry’s net profit margin remained below 1%. Sales continued to decline in July, and TV companies remained cautious about purchasing panels.
Cui Jilong, Deputy Director of the Display Industry Chain Research Division at Ovid Cloud Network, noted: “From April last year to June this year, panel prices rose by about 40% on average, but TV prices increased by less than 20%. While panel manufacturers benefited, TV companies struggled.†He added that the drop in TV shipments and panel purchases led to an oversupply of panels, and after June, panel prices began to fall from their peak.
Looking ahead, Cui said that 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. While the price decline has eased cost pressures for companies, Cui pointed out that a full-blown price war is unlikely to return soon. Instead, innovative products such as OLED TVs and quantum dot TVs are expected to take center stage in the upcoming “11†promotions. These cutting-edge models could drive sales and help revive the market.
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