LCD panel prices are expected to continue to rise, Samsung and LG shelve business closure plans
Market research company Omdia said on the 4th that the price of a 55-inch LCD panel in January was US$181, and it is expected to increase to US$188 in March. Compared with the same period last year, the price has almost doubled. The continued promising market prospects also made Samsung Display and LG Display shelve plans to withdraw from LCD production.
The analysis also pointed out that the prices of 50-inch and 65-inch LCD panels are also rising. In February, they reached US$154 and US$230, respectively, an increase of 81% and 42% from 2020. Omdia predicts that the price increase of large-size LCD panels is expected to continue until 2022.
Omdia pointed out that the average price of 55-inch LCD panels in the first quarter of this year is expected to remain above US$186, and will remain at around US$170 by the end of 2021. By 2022, the average price is expected to reach US$165, and even the worst-case price will not be less than US$160.
BusinessKorea reported that the severe oversupply of the LCD panel market in 2019 led to a sharp decline in manufacturers’ profits, and major Korean panel makers were led by their Chinese counterparts. In the same year, Samsung Display and LG Display decided to close their LCD business by the end of 2020 and switch to high-end display technology.
However, what is surprising is that the new crown pneumonia epidemic continues to push up the sales of notebook computers, TVs and other products, and the demand for LCD panels has surged. At the same time, as Samsung and LG reduce production of related panels, since the second half of 2020, The situation of short supply is becoming more and more obvious.
Analysts pointed out that this development has pushed up the price of LCD panels. When the unit price exceeds $150, the profit margin of manufacturers has also risen rapidly. Therefore, both Samsung Display and LG Display said they would respond flexibly to the market situation, but did not disclose specific production plans. (Jiwei)
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