Who will stand out in troubled television in 2017?

Since last year, TV panel prices have continued to soar due to insufficient supply and other issues, and most TV manufacturers have had to increase the selling price of their products as a response. However, in 2017, this phenomenon has not been eased and the tension in panel supply continues. Most TV makers are still uneasy about whether they can obtain stable panel supply in the future.

It is understood that the global first-line TV brand manufacturers, including Samsung Electronics, LG Electronics, TCL and Sharp, plan to increase their orders for Samsung Display, LG Display, China Star Optronics and Sharp, which are the exclusive panel suppliers, and their total number of panel purchases. The average share of the total supply of its own panel suppliers to its group increased from 34% in 2016 to 41% in 2017.

According to the latest IHS Markit report, among all TV brand manufacturers, Sharp’s panel orders for the group's internal panel makers have increased the most, from 36% in 2016 to 93% in 2017. After Foxconn acquired Sharp in 2016, it decided to stop supplying TV panels to Samsung Electronics in 2017. This move caused supply chain turmoil and changes in relationships, which also deepened the concerns of the entire industry.

In terms of new technologies, OLED replacement of LCD is a general trend. Compared with the latter, OLED has features such as thinness, power saving, and high performance. Moreover, there are essential differences between the materials used in OLEDs and traditional display technologies. The materials used in OLEDs are organic materials, and the traditional display technology uses metals. However, due to the high price of OLED panels, especially large-sized screens, it is difficult to popularize household appliances and televisions in a short period of time.

Based on the above, we predict that acquiring more panel supply from panel makers within the group will become a key strategy for TV makers in 2017. At the same time, how to ensure the diversification of panel supply sources and the integrity of product lines is also an important strategy for television manufacturers in a highly competitive and cost- and price-sensitive market.


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