In the past two years, we noticed that the price of large-size LCD TVs has fallen like an avalanche. The price of 4K 55-inch TV is only 1,000 yuan ($141). Agree this is unprecedented.
The slump in large-size TV prices is related to the sharp increase in LCD panel production capacity by Chinese manufacturers. The largest panel maker in China, BOE has surpassed LG becoming the world’s largest LCD supplier. Plus, Huaxing Optoelectronics, Tianma Microelectronics, Visionox, and other local panel makers account for more than 50% of global LCD production capacity.
In fact, Chinese companies have seized the market that was originally occupied by South Korea, Japan, and Taiwan companies. Also, they brought a fierce market competition, which has caused LCD panel prices to fall.
According to data released by IHS Market in September, LCD panel prices have fallen for three consecutive months due to fierce price competition in the industry. This year, the prices of LCD panels have dropped by 30%.
The price decline caused by market competition not only brings a lot of benefits to domestic consumers but also makes the overseas markets drop the prices. According to the mentioned report, the price per inch of flat-panel TVs fell to $10.9 per annum in January-March, down 17% year-on-year, and fell again by 8% in the Q2 quarter of April-June.
This has also led to a sharp decline in flat-panel TV prices in the United States, Europe, and other countries and regions. The price of 4K 65-inch TVs in Wal-Mart stores in the United States is about $450, and the price per inch in Q2 is down 9%. At the same time, the price of TVs in the European market, also fell by about 9%.