Price Hikes Expected for Samsung, LG and Sony TVs

Major TV manufacturers Samsung Electronics, LG Electronics, and Sony are facing a difficult financial situation in the global market. According to reports from the Korean resource The Elec, large Chinese display factories have begun increasing the prices of liquid crystal (LCD) panels, and notifications have already been sent to global brands. This is reported by Ixbt.com reports .

The changes affect global market leaders such as BOE, TCL CSOT, and HKC. Specifically, BOE plans to implement its new pricing policy starting in the fourth quarter of this year. However, other major players like TCL CSOT and HKC have already begun raising the cost of certain types of panels as early as the autumn months.

Why are prices rising?

It is no coincidence that this pricing policy began in the autumn. August and September are the periods when the world's leading tech brands prepare for the busiest sales season at the end of the year. This is exactly when companies purchase essential components for Black Friday, Christmas, and other major holiday sales.

In the current environment, it is difficult for Samsung, LG, and other manufacturers to drastically cut purchases or take alternative measures. The reason is the high risk of being left without components ahead of the peak annual sales season. It is also worth noting that this situation has not arisen due to a market shortage.

The dominance of Chinese manufacturers in the market

According to data from the analytical agency Omdia, Chinese factories are not operating at full capacity to maintain a balance. Some enterprises are loaded at only 70 percent, and manufacturers are consciously limiting output to prevent oversupply and maintain high prices.

This strategy is made possible by the absolute dominance of Chinese companies in the market. Omdia estimates that today, BOE, TCL CSOT, and HKC control between 70 and 85 percent of the global market for 65, 75, and 85-inch large LCD panels. In the ultra-large TV screen segment, their share is approaching near-monopoly levels.

The situation has been exacerbated by the gradual withdrawal of South Korean companies from this market. Specifically, Samsung Display completely stopped producing LCD panels in 2022. LG Display also closed its LCD production for TVs in South Korea and sold its facility in Guangzhou.

As a result, the number of alternative suppliers has decreased sharply. This has further expanded the ability of Chinese manufacturers to influence the price of panels, which are one of the most expensive parts of TVs, making future price increases for finished products inevitable.