LGD production increase effect highlights! The price of OLED panels for TVs has shrunk for two consecutive quarters

Image source: LG

According to the Nikkei Shimbun 24 daily report, due to the increase in production of major supplier LGD, but also let the tv with large-size OLED panel prices accelerate the decline, the price of indicator products in the 10-12 months fell by 4-5% compared with the previous quarter (July-September 2021), the second consecutive quarter fell into a contraction. Due to the mass production effect, the olED panel price has continued to show a downward tone since 2020, and then due to the economic demand of the house, the price of the LCD panel soared, and the price of the OLED panel also rose in 3 years in April-June 2021, but the price in July-September turned down again (down about 3%), the decline in October-December expanded, and the price fell by 20% in a cumulative period of 2 years.

Panel factories and TELEVISION factories typically negotiate and finalize prices on a quarterly basis. The wholesale price of 65-inch OLED panels for TVs, which are indicative products, fell by 4% from the previous quarter to about US$805 (about 5127 yuan) per piece, and the largest 55-inch product in circulation also fell by 5% to about 475 US dollars (about 3025 yuan) per piece.

LGD began to use the 8.5-foundry in Guangzhou, China to mass-produce 55-inch and other large-size TV OLED panels in 2020, and gradually increased production, and the current annual shipment of LGD OLED panels has increased by 70% to 7.5 million units compared with 2020 (4.5 million units). Yoshio Tamura, asia representative of U.S. research firm DSCC, said that it is expected to further increase to 10.5 million pieces in 2022 (LGD OLED panel shipments). Panel prices are expected to continue to show a downward trend.

The report pointed out that the decline in the price of oled TVs due to the decline in the price of major components "panels" has also accelerated. At a Japanese electricity retailer, the price of a 55-inch OLED TV has fallen below 250,000 yen (about 13,900 yuan). The head of the store said that if the price of a 55-inch OLED TV fell below 300,000 yen (about 16,700 yuan) 2-3 years ago, it would feel cheap, and recently the price has fallen further to less than 250,000 yen (about 13,900 yuan). The price difference between OLED TVs and LCD TVs has narrowed from 110,000 yen (about 6,105 yuan) three years ago to the latest 90,000 yen (about 4,995 yuan).

According to statistics released by the Japan Electronic Information Technology Industry Association (JEITA) on December 21, 2021, the shipment of thin-duty TVs (including 4K TVs and OLED TVs) in Japan in November 2021 shrank by 10.6% from the same month last year to 458,000 units, falling into a contraction for the fifth consecutive month due to the slowdown in demand for the home economy.

Japan's OLED TV shipments rose 21.0% from the same month last year to 56,000 units in November, showing the third consecutive month of growth, and monthly shipments hit the fourth-highest record in history since the monthly OLED TV shipments data was released in April 2018 (down from 74,000 units in June 2021, 65,000 units in May 2021, and 64,000 units in December 2020).

Source: MoneyDJ News

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