LCD TV Prices Could Rise Before Christmas

Amongst the suppliers of LCD-TFT panels for TV manufacturers, opinion is currently divided about how prices may shift in the second half of the year according to Taiwanese site Digitimes.  Some of them expect TV prices to fall as a result of hoped-for price rise which has failed to materialize this autumn, while others are preparing for the exact opposite.  Although there is little certainty about developments between now and Christmas, suppliers and commentators are in agreement on one point: panel prices are set to rise in the first half of 2011.

A price rise was hoped for in August because panel manufacturers are now selling their products almost at cost-price and want to stop TV prices falling any further.  To preserve their margins, AUO and CMO may well reduce their production to 90% of capacity and LG Display to 95%.  With the usual rise in demand at the need of the year, this reduction in supply should lead TV manufacturers to use up their current reserves faster and order more panels from the suppliers.

What impact in the shops?

If the cost of the basic components rises, then the price of the finished products may well do the same.  But several factors affect the price: the supplies that TV manufacturers already have, how successful they are at negotiating a deal and the retail prices offered by both manufacturers and distributors.  Whatever happens, you can be sure we'll be keeping a very close eye on the price of televisions ...

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