The market of Smart TVs is becoming increasingly competitive lately with several smartphone makers, like Realme and OnePlus, joining this trend. Nowadays we have a huge gamma of devices to select and competitive prices, however, a new report states that it may change in the next quarters.
According to a report from Business Korea, the price of 32-inch LCD Open Cell Panels rose 6% this month and the trend is expected to continue in the next quarter. Apparently it will cross the 10% mark in the third quarter of 2020. The reason given is an increase in the production of more TVs in the second half of the years as the COVID-19 pandemic eases in some countries. Several companies have increased their stocks of LCD panels due to the weak sales in the first quarter. In the same vein, POLED and OLED panels production will resume in the next quarter.
However, the report states that a decline in LCD supply will happen in the first quarter of 2021. The Global supply of 8G or higher generation LCD panels will fall 9.7% in terms of total area. Moreover, Samsung Display, one of the world’s biggest LCD supplies will discontinue the production of these panels from 2021. LCD TV panel prices should continue going upward throughout the year.
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OLED TV panels should become more popular as LCD will become more expensive
In related news, the report states that OLED TV panel production is now in full swing. The OLED TV Panel line in Guangzhou finally running at normal capacity after a year of delay. The report states that OLED TV panel output should jump 41% YoY to 4.81 million units in 2020. It will reach 65.7% YoY to 7.97 million units in 2021. Shipments of smartphone-use OLED panels to strategic clients will grow more than threefold with production at the small/mid-size POLED panel line also back to normal levels. POLED panel operations, in particular, will become profitable in 2021 on visible growth in sales of high-margin automobile-use panels.
The source states that the target price of LG Display will increase by 6.7%. The news outlet states that the growth of OLED TVs has been pushed in an indirect manner by COVID-19. Apparently, watching movies at home on Netflix or other streaming services with a 65-inch or large big-screen TVs has emerged as a new trend amid the pandemic. Now, the demand for 65-inch OLED TVs is far better than before. We may see a boost from June anticipating the release of Sony’s PlayStation 5.