As the year draws to a close, the panel pricing is set to enter another phase of adjustment. On one hand, the overall demand for complete machines remains low, which is expected to keep panel prices under downward pressure. On the other hand, panel manufacturers aim to maintain strong financial performance and would prefer to limit price cuts as much as possible to sustain profitability.
The 32-inch segment has seen a gradual increase in demand due to improved market conditions. However, suppliers such as HKC, SDC, and LGD have started ramping up production in November, leading to a simultaneous rise in supply and demand, which has pushed prices lower.
For the 40-43 inch range, high inventory levels have created pressure, resulting in a slight price drop. Looking ahead, this segment is expected to absorb some of the demand shift from the 32-inch category, and the decline in prices should stabilize.
The 49-50 inch segments are also experiencing downward pressure. The 50-inch panel faces high inventory challenges, leading to a more pronounced price drop. Meanwhile, the 49-inch category has absorbed some of the pressure from the 50-inch segment, with a decrease of around $5.
In the 55-inch category, product restructuring led to lower shipments in Q3 compared to Q2, causing a delay in supply for the fourth quarter. As a result, the supply-demand balance has tightened, helping to maintain relatively stable prices.
For 65-inch panels, shipments have grown by over 60% compared to the start of the year. However, the pre-sold terminal market hasn't been able to absorb this rapid growth, leading to increased inventory. Combined with high profit margins, there's an incentive to stimulate sales through price reductions. It’s expected that 65-inch panels will see a price drop of about $10.
Looking at the broader market, the Double 11 shopping festival has delivered positive results, significantly reducing channel inventory. This gives companies more flexibility in managing their stock. There's still a gap between current performance and annual targets, so the low-price strategy is likely to continue, accelerating inventory turnover to boost shipments.
With key promotional events like December 12th and New Year’s Day approaching, the average TV price is expected to continue declining in the retail market. However, given the aggressive promotions in November, which may have drawn forward demand, the rate of price decline in December is expected to slow down.
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