Recent LCD TV prices are less likely to drop

National Development and Reform Commission to impose sanctions on six LCD panel companies, for the domestic color TV industry will have what effect? Does it mean that the price of LCD TVs, especially domestic ones, will plummet, and consumers will benefit from them? In response, the reporter interviewed Skyworth and other domestic color TV manufacturers.

LCD panel suppliers are too strong
"This sanction is definitely a good thing for our color TV production companies and is conducive to maintaining the market order." In the afternoon of the 4th, relevant responsible person of Skyworth Group admitted in an interview that due to the limited panel production enterprises, the market is in short supply. For a long time, Domestic color TV companies have been in a weak position in the game with upstream LCD panel suppliers.

"Basically, they say how they go up and how they go up. There is no room for negotiation." The person in charge of a well-known color TV brand in China, who declined to be named, recalled that the company had signed a single contract with an upstream panel maker. In the middle of the year, the panel maker changed the contract directly and requested to increase the unit price by US$5. “If you don’t accept it, he will stop supplying it.”

“Because LCD panels account for nearly 70% of TV production costs, panel companies have an absolute advantage, directly pushing up the purchase costs of color TV manufacturers,” said the responsible person at Skyworth.

Refunds are difficult to return directly to consumers

Does this move mean LCD TVs will cut prices? How much benefit can consumers get from it?

"Consumers should benefit from it, but the impact may not be too obvious." Many TV manufacturers believe that, in an interview with reporters, at least in the near future, LCD TVs are unlikely to be significantly reduced.

According to industry sources, since 2006, the purchase price of LCD panels has been declining year by year, and the space for purchasing cost has been digested in price wars and price cuts.

After TCL, Skyworth, Konka, Changhong and other major domestic color TV companies received a refund of 172 million yuan, can consumers receive a corresponding refund? In the eyes of people in the industry, although in theory the refund should indeed be returned to the consumer, it is difficult to actually operate it. "However, LCD panel makers have promised to extend the warranty period for LCD panels without charge, from the past 18 months to 36 months."