LCD screen falls below cost price?
A few days ago, Samsung stated that it will officially withdraw from the LCD market and fully turn to more advanced screen technologies such as OLED, QD, and miniLED. Why Samsung no longer produces LCD screens, the reason is that the price is too low, and it is already losing money.
According to the agency's data, the price of LCD screens in January 2014 was the highest. If it was set at 100, it would be only 41.5. In June last year, the price was 87, which means that it fell by half this year. many.
At the same time, it is expected that by the third quarter, it will drop to 36.5, which is only one-third of the price when it was the highest.
According to experts, the price of LCD screens must reach 45 or more, and the screen manufacturers can really make money. Once the price is lower than 45, the manufacturers with good cost control may have small profits, and those with poor control will lose money, so Samsung resists No longer live, no longer produce LCD screens.
Why has the price of LCD screens dropped so much? First, the current consumer electronics market demand is weak. In the two years of 2020 and 2021, the outbreak of the home economy has greatly increased the sales of PCs, TVs, tablets, etc., but after retaliatory consumption, they have finally stopped rising. Sales of mobile phones, etc. have plummeted and plummeted this year!
Second, in the two years of 2020 and 2021, because the demand for LCD screens has greatly increased, manufacturers are expanding production, and the production capacity has increased rapidly, but now the demand has decreased, and the production capacity has increased again, which means that there is excess production capacity.
According to wind data, the current inventories of manufacturers are quite high, with an average of 8-12 weeks, which is 2-4 weeks higher than the normal level of 6-8 weeks.
In the first quarter, the inventory value of TCL Technology, Visionox, Longteng Optoelectronics, and Rainbow shares all increased by more than 50% year-on-year, and the inventory value of Rainbow shares increased by 125.12% year-on-year.
That is to say, the LCDs produced cannot be sold, and they are accumulated in the warehouse. Next, major manufacturers have to find ways to destock, and it is impossible not to cut prices.
According to media reports, many screen manufacturers, such as BOE, TCL, etc., have already begun to cut orders for driver ICs, because production has begun to adjust. The upstream driver IC manufacturers have also cut the number of wafer foundry production, and the rate is even as high as 30%.
The entire driver IC and LCD screen market will no longer be in short supply, but will return to the traditional cycle of off-season and high-season, and now the off-season is coming.
BOE is the world's largest LCD screen manufacturer, and TCL is the world's second largest LCD screen manufacturer. The LCD screen falls below the cost price and the demand is weak, which will be the most affected.