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© samsung
Analysis |

Surge in panel prices spurs brands to stock up early

TrendForce’s latest forecast predicts global TV shipments for 2Q23 will reach 46.63 million units – a 7.5% increase QoQ, a 2% growth YoY.

The uptick in shipments is primarily due to strong stockpiling momentum from Chinese brands for the 618 e-commerce shopping festival, as well as overseas sales of some Chinese brands surpassing expectations. This marks the first YoY growth observed in seven consecutive quarters, signifying that channel inventory has returned to healthy levels after an extended period of destocking. Brands will continue to adjust their stocks according to fluctuations in demand. Looking ahead to Q3, the peak season for stockpiling, TV shipments are projected to increase by 13.5% QoQ, totalling 52.92 million units.

Panel makers continue to operate on a demand-driven strategy – rigorously controlling their production rates –despite TV panel sizes of 55 inches and below becoming profitable in June. This strategy aims to sustain the rising trend of TV panel prices until the peak stocking season in Q3. Nevertheless, current end-user demand seems to be curbed by high inflation, with the majority of consumer demand persistently focused on low-priced models. TrendForce suggests that, due to the divergence between panel prices and end-user selling prices, brands strive to maximize profits by preemptively stocking up to reduce production costs. Consequently, the growth rate of global TV shipments in Q4 may decelerate, converging to 4.5%, for approximately 55.13 million units. This marks a decrease of 5.1% from the brands’ initial shipment plans at the year’s start, with further reductions being a possibility.

Hisense and ONN sales rank in top three TV brands in North America this year

Impacted by ongoing inflation and interest rate hikes, TrendForce observes a change in consumer preferences for TV products, most evident in North America. Retail sales in North America have grown 2.9% during the period of January to May. Bestsellers include Walmart’s ONN’s 32-inch HD model (US$99) and 50-inch UHD model ($198)—holding the top two spots for five consecutive months. Hisense’s 58-inch model ($268) ranked third. This year, both ONN and Hisense have witnessed substantial sales growth in North America, ousting TCL and VIZIO to secure the second and third positions in market sales, with respective market shares of 18.3% and 13.5%.

Hisense sets a single-quarter shipment record of 7.25 million units

The promotional prices for TVs ranging from 32 to 75 inches during China’s 618 sales have surged 10–20% higher than prices during last year’s Double 11 event, largely in part due to the continuous rise in panel prices. Brands have been offering discounts on 85-inch or larger sizes to sustain sales growth. As a result, Chinese brands ramped up their Q2 shipments to seize a larger market share during the 618 events, with Hisense and TCL’s Q2 shipments rising 21.2% and 19.7%, respectively. Hisense broke the record for single-quarter shipments, hitting 7.25 million units, representing a YoY growth of 33.3%. Hisense’s performance overall has stood out as the most impressive among all TV brands.

Brand2Q23QoQYoY
Samsung8,000-13.0%-4.8%
Hisense7,25021.2%33.3%
TCL6,20019.7%21.6%
LGE4,990-12.3%-6.7%
Xiaomi2,2901.8%-23.4%
Others17,89718.8%-3.0%
Total46,6277.5%2.0%
Global TV brand shipment levels 2Q23

For more information visit TrendForce.


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February 13 2024 4:53 pm V22.3.28-2
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