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>> Saturation in the television industry OLED high-end TV contrarian growth 23th,Apr,2018
Affected by the downturn in the TV market and the surge in panel prices, the TV performance of many companies declined. However, in the high-end market, sales of OLED TVs in the Chinese market in 2017 will increase by 2 times compared to 2016, and the growth rate in 2018 will still reach 100%. The industry expects that the huge room for growth will make the competition in China's high-end color TV market more and more intense.
In 2017, China's color TV retail sales reached 47.52 million units, a year-on-year decrease of 6.6%, the largest drop since 2003. According to the 2017 annual report, Haixin Electric's net profit for color TVs was 942 million yuan, a decrease of 46.45% year-on-year. Hong Kong-listed TCL Multimedia in Hong Kong, LCD TV sales in mainland China fell by 2.7% year-on-year in fiscal year 2017. Skyworth’s net profit also fell compared to last year, and Shenzhen Konka TV's revenue dropped by 3.87% year-on-year. .
High-end OLED TVs have grown against the market. According to IHS data, in 2017, in the high-end TV market of more than $2,500, OLED TVs accounted for 51.3% of the world's total, surpassing LCD TVs for the first time. This figure was only 15.5% in 2015 and 35% in 2016. IHS expects that in 2018, the proportion of OLED TVs in the high-end TV market of US$2,500 will climb to 70.7%, making it the first choice for high-end consumers.
OLED panel is in short supply
According to Zhong Yikang’s forecast, the sales of OLED TVs in the Chinese market from 2017 to 2020 are expected to be 180,000 units, 550,000 units, 1.5 million units, and 2.5 million units respectively. South Korea KB Securities analyst said that in March this year, OLED TV panel has appeared 30% of the supply and demand shortage.
IHS data shows that from the second quarter of 2018, the number of OLED TVs in China will enter a period of rapid growth, of which, the second quarter of 2018 is expected to increase 118.8% year-on-year, and the second quarter of 2018 is expected to increase 120.4% year-on-year. . In 2019, China's OLED TVs will increase by 115.5% over 2018.
In order to increase the production capacity of OLED panels, by the end of 2017, LG Display confirmed that it will build a world-leading 8.5-generation OLED TV panel production line in Guangzhou. The monthly production capacity will be 60,000 (based on glass substrates), and mass production is expected in the second half of 2019. It is reported that this is the first overseas OLED panel production line after Korea’s homeland. LG Display China President and Deputy President Yu Yusheng stated that after the completion of LG Display’s 8.5th generation OLED factory in Guangzhou, China is expected to become the world’s second OLED TV panel production base.
OLED TVs become a color TV company's earnings "milk cows"
In the industry analysis, the growth of OLED TVs in the high-end market, on the one hand, has met the consumer demand for quality of life that has gradually improved; on the other hand, it has brought new profit growth points for TV manufacturers.
According to the data, as the first domestic company to promote OLED TVs, Skyworth's report for the 2016 to 2017 fiscal year shows that in the context of the overall slowdown in domestic TV market demand, high-margin, large-size products have greatly reduced the average price fluctuations in the industry. The impact of corporate profits, which Skyworth 4K smart TV sales in the Chinese market accounted for a significant increase to 45.9%, sales rose 53.6% year-on-year.
It is reported that currently include Japanese manufacturers such as Sony and Panasonic, Korean manufacturers such as LG Electronics, and 13 TV manufacturers such as Skyworth, Konka, and Changhong have joined the OLED camp, including almost all major TV companies worldwide. Li Shangxun, vice president of marketing and marketing at LG Display Television Division, told the Guangzhou Daily reporter that there will be a Chinese brand and Japanese brand TV maker joining the OLED camp this year. According to IHS statistics, the contribution rate of OLED TVs to the revenue of TV manufacturers is increasing, of which Sony’s overall TV revenue in 2017 increased by 21% compared to 2016, while the contribution rate of OLED TVs reached 8%; LG Electronics’ overall TV revenue in 2017 compared to 2016 Annual growth of 9%, of which OLED TV contribution rate of up to 52%.
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