Second half of the price increase in the second half of the price increase is not significantly increase the price of color TV

The day before the release of TCL group reported a first half of 2009, the company first half of total operating income of 17 billion 500 million yuan, of which LCD TV sales reached 2 million 930 thousand units, year-on-year growth of 93%. Analysts believe that the current domestic flat-panel TV market sales volume rapid growth, accelerating to replace the traditional CRT TV trend, but this year due to the upstream LCD panel prices continue to rise and the TV terminal squeezed profits, resulting in most of the domestic color TV enterprises fall into "income does not increase profits" predicament, with three or four quarter panel prices slightly further rose, color TV enterprises will become more prominent price pressure.

The LCD panel prices to make TV enterprise income does not increase profits

In the home appliances to the countryside, energy subsidies, the old three new policies to stimulate the domestic color TV companies in the first half of this year, flat-panel TV sales grew rapidly. In addition to the first half of the TCL group LCD TV sales grew by 93%, the first half of Hisense's flat panel TV sales grew by 141%, of which domestic flat-panel TV sales growth is close to 200%.

Statistics Chinese Video Industry Association recently released show that in 2009 the domestic color TV industry in the first half of the total production of 41 million 740 thousand units, an increase of 1.3%, one quarter of flat-panel TV production accounted for 64.6%, the two quarter reached 72.2% (LCD TV accounted for 70.5%). The industry's largest six companies are the backbone of local brands (TCL, Hisense, SKYWORTH, Changhong, Konka, Haier), the first half of the LCD TV production of 11 million units, an increase of more than 100%.

It is worth noting that, in the LCD TV sales growth at the same time, the domestic color TV enterprises are facing a severe test of the upstream LCD panel prices all the way up. In 32 inches panel, for example, its price has risen from $165 at the beginning of the year to $215, or nearly $30%. Due to the LCD panel LCD color TV cost of 60% to 70%, a substantial increase in the price of the panel directly squeezed the profit margins of color TV companies, resulting in the decline in the color TV business profits or even a loss selling phenomenon.

Experts believe that the domestic color TV enterprises, because the mainland does not have the production ability of the LCD panel TV, LCD TV panel can only rely on imports, so the cost of TV sets is constrained by the upper panel is relatively large, in this case, the price will only bear on the panel color TV enterprises and digestion.

The three or four quarter panel supply will remain tight

Due to the current domestic LCD TV market demand is expected in the second half of the panel supply will remain in short supply situation. Market forecast 2009 LCD TV market domestic retail size of nearly 21 million units, shipments up to 24 million units in the second half of this year, a single quarter, the demand for LCD TV panels up to more than 5 million. Third, the fourth quarter is usually LCD TV sales season in each year. However, due to the current global panel supply is tight, although the panel companies to increase the operating rate but there is still a gap in supply, which has a negative impact on the domestic color TV enterprises.

At the same time, the current industrial chain upstream glass substrate shortage also restricts the supply of LCD panels. The world's largest flat-panel TV glass substrate manufacturer Corelle shows the Ministry of science and technology China District President Li Fang said, is currently out of stock of the glass substrate with Corelle in the second quarter has greatly reduced inventory, to meet customer demand, and from the strategic angle, restart the furnace equipment. However, due to the current demand for higher production capacity is expected in the third quarter production capacity is still tight, so Corelle will consider the long-term supply agreement signed for customers to give priority to supply.

According to the panel supply phenomenon, Hisense Board Secretary Xia Feng said in an interview with reporters, the TV industry this year are generally at the panel supply tight situation, because of the financial crisis last year led many panel manufacturers product prices below the cost price, so that although there is a market demand but the panel manufacturers reluctant to increase production, thus the current supply and demand gap. Now the key is due to the lack of balance between the supply and demand balance, the entire market demand and the contradiction between the supply of the entire market.

Liquid crystal TV companies highlights the price pressure

In the panel supply is still tight situation, LCD panel prices in the third and fourth quarters is expected to rise slightly. Executive vice general manager of the world's third largest LCD panel factory Taiwan AUO global business Peng Shuanglang recently said in an interview in Shanghai, the second half of the LCD panel prices will continue to enter the upstream channel.

Panel prices have led to the rise in the cost of LCD TV sets. In order to reduce the cost pressures brought about by the price of the panel, part of the LCD TV companies recently began to charge the original free base accessories. Hisense electric Xia Feng said that in response to rising panel prices, Hisense has mainly taken two measures, one is to adopt module self-control, two is through the technical differences, the adjustment of product structure, the introduction of new products to keep the average price level, so as to maintain a certain profit margin. Another analyst believes that in the face of rising pressure on the panel prices, some color TV companies will inevitably implement the price strategy for LCD tv.

In the face of liquid crystal color TV enterprises price pressure, market research firm SEMI China display manager Yang Yunjiao believes that the possibility of the next big LCD TV prices, not only because the panel in the price, even the panel of the main raw materials