“This is a situation that has not been seen in the television industry for a decade now. The price of LCD TV panels has risen in an all-round, sustained, and substantial manner. The superposition of natural disasters, man-made disasters, and consumer upgrades has caused the television industry to burst into tears.†An Internet TV brand Executives and the shock wave of TV panel price rises first in the thinly profitable Internet TV field.
After LeTV decided to increase the price of the 4th generation of LeTV Super TV models by 100 to 200 yuan, Stormwind Group also attributed the sharp drop in net profit in the third quarter to the increase in the price of raw materials such as TV panels.
The days of the entire industry are not easy. Even traditional TV manufacturers with more resource advantages in the upstream industry chain have to face up to the decline in profits in the third quarter and worse in the fourth quarter.
At the same time, the lack of resources in the upper reaches of the city is rapidly being transmitted to the consumer end. A number of color TV companies have indicated that the promotion of the Double Eleven has been reduced. Although the already-developed models no longer “sit pricesâ€, the newly launched color TV sets The price is a foregone conclusion.
Internet TV sells a loss
“Insufficient supply is the main reason for the panel price increase. On the one hand, Samsung, Sharp and other panel makers are interested in adjusting the supply scale and product structure, specializing in higher-profit OLED mobile phone panels, and in the first quarter, Samsung’s SDC panel yield rate. On the other hand, the Taiwan earthquake has caused panel makers' production lines to be hit hard, and supply and demand have become tight.†Lu Feng TV CMO Lu Shengbo said that the increasing size of global television is also increasing the demand for panels. For each inch of LCD TVs, a 8.6-generation cable is consumed. At present, the average size of TVs in the world has increased by 2.6 inches, which means that it is necessary to add three 8.6-generation lines to satisfy. The reality is that the production line has not only increased but also closed down.
According to the IHS Markit monitoring, in the first quarter of 2016, due to the increase in China's capacity and seasonal market demand, the panel supply exceeded 20% of demand; in the second quarter, the market adjusted itself and demand began to rise gradually; in the third quarter, Supply and demand conditions have started to become tight, with supply exceeding only 10% of demand; supply is expected to exceed only 8% of demand in the fourth quarter. According to the panel price of the international market updated on October 19, the 40-inch 1080P Full HD LCD TV panel had a maximum increase of US$17, which was quoted at US$135, and its rise was equivalent to RMB115.
The panel accounted for more than 65% of the cost of the whole machine, and this increase caused pressure on the Internet TV manufacturers who have been playing the "price butcher."
“In the past, a 40-inch TV panel was able to receive 90 US dollars. According to the current price of US$135, the actual panel cost increased by US$45, equivalent to RMB 304. The current trend is that the price of the panel is only higher. The highest is.†According to an Internet TV industry activist, the 40-inch Internet TV has a price of more than RMB 1,000. The increase of RMB 304 means that the more you sell, the more you lose.
"The Internet brand has been losing money. Now it's a question of how much it's losing. Can we afford it, but we can't sell it? This means that it affects the capital chain." The industry source revealed to reporters. Because it did not get more panels, the brand's sales on its own holiday sales were affected.
Double 11 is one of the most important battles for users of Internet TV. The rise in raw materials hit consumers’ eager concessions, and LCD TV makers are enemies. “TVs and mobile phones are consumables, prices tend to fall, and prices are unlikely to increase, but if you take this year’s double 11 discount and double 11ã€6·18 in previous years and the manufacturers’ own festivals Compared with this year, the double 11's price discount rate is reduced.†Liu Buchen, a veteran home appliance analyst, has a greater impact on Internet TV in the low-end market. The price of TV has tended to be more costly and its profit has become thin. There are many losses, and the double eleven must bite the bullet. â€
Kill a thousand self-defeat eight hundred
The impact of material price increases on the whole machine manufacturers has been highlighted. According to the third quarter 2016 financial report released by Storm Group, the company achieved operating revenue of 4.02295 million yuan in the third quarter of 2016, an increase of 203.99% over the same period of last year. However, net profit decreased by 97.16% to 487,600 yuan. The operating loss for the third quarter of the storm was 145 million yuan, and the operating profit for the same period last year was 16.89 million yuan.
For the decline of profits, Stormwind Group gave an explanation. One of the important aspects is that the launch of Storm TV's new products and marketing promotion have increased the cost. Among them, the price of raw materials such as TV panels has risen sharply, which has also led to a substantial increase in costs.
Panels dragged down the storm group performance, storm TV is difficult to profit, in the eyes of the industry seems to be quite bustling, sadness of a sense of desolate, but for an Internet company, the initial development of strategic investment losses can be understood. Lu Shengbo responded that sustainable management, quality growth and innovative products are the values ​​of Storm TV. Storm TV does not advocate simply shifting costs to consumers. It will insist on more sustainable methods to control costs and improve Industrial efficiency. The 45-inch Storm Super TV and the host-upgradable TV launched by Storm TV are the solutions to the rising costs of Storm TV.
After the price of TV panels continued to rise, even if it is focused on playing ecology and not relying on hardware, LeTV has also increased the prices of the fourth-generation LeTV models by 100 yuan to 200 yuan. LeTV 2016 semi-annual report shows that LeTV’s LeTV’s first-half net profit loss was RMB 51.87 million.
From the latest data provided by LeTV on November 9th to reporters, from July 3, 2013 to the end of October 2016, LeTV sold nearly 9 million units.
"A large part of the decline in profitability of color TV companies is attributed to the low price of LeTV. However, its new profit model has not made a profit contribution to LeTV. Instead, it has given color TV companies a lesson. Everyone imitates the music and nurtures. The content charging model is unshakeable while sticking to the strategy of earning money through hardware.†Liu Buchen told reporters that there are not many companies that directly increase their price, such as LeTV. More companies are upgrading their product structure to improve the opportunities for high-end TVs, including 4K and smart phones. Take up, or increase pricing when you push new products.
LeTV’s new CEO, Liang Jun, explained in a circle of friends: “Super TVs after price increases will still insist on eco-subsidy hardware and negative-profit pricing; they still insist on high allocation and will not reduce costs by reducing configuration; they will continue to stick to the big screen. Users operate, improve their ecological cash-generating capabilities, and better subsidize hardware costs."
Each company faces headwinds when it comes to increasing costs, either attacking a market, creating a new price segment, or creating a new product category. Under the background of rising costs, the price war has become a double-edged sword, killing one enemy. Since the loss of 800. It is undeniable that LeTV’s price increase rate has given the market a two-difficult question. Even if major TV companies want to raise prices, they must consider whether they exceed LeTV’s price increase rate of RMB 100-200, because once they exceed it, they are likely to lose. Market initiative. Traditional TV manufacturers:
Pain and happiness
Because of its own R&D capabilities and factory manufacturing capabilities, traditional TV manufacturers, who have taken the upstream resources of the supply chain firmly in their hands, are more prone to the rise in raw materials prices than Internet TV. “Even if it is to find a foundry, due to the large volume of processing by traditional TV companies, the foundry will meet these companies first and then meet the Internet TV companies.†Wei Qi, an analyst at GFK Black Power, believes.
“The panel prices reflect the company’s market control capabilities, resource allocation capabilities, and product competitiveness. Haier’s TV panels come from suppliers such as Samsung and BOE, and strategic partners exchange resources for resources. Haier’s procurement panel The price is more competitive.†According to Haier’s responsible person, Haier has already fine-tuned the prices of some TV models due to panel price increases. In this year's double-tenth, Haier TV will not be positioned in the price war. Instead, it will optimize the user experience through multiple online and offline scenarios to give users more product value discounts.
For the industry’s rumors that traditional TV makers have taken the opportunity to hoard their panels in an attempt to suppress Internet TV, the responsible person stated that the supply and demand relationship of the panels follows a regular pattern. For example, the 32-inch panel was oversupply last year, from US$90 to US$48 once. Manufacturers continue to reduce production, even if the 32-inch panel rebounded to 74 US dollars in October this year, the price is relatively acceptable. Traditional TV manufacturers have been working in the industry for many years and have their own resources and market observation capabilities. Some traditional television manufacturers including Haier have already made resource reservations.
Even so, traditional TV manufacturers still face the dilemma of falling profits. “The profits of the major manufacturers’ third quarter earnings compared to the second quarter have declined. The figures in the fourth quarter earnings report are expected to be even more ugly, and their profitability will continue to decline. If we say that the first and second quarters will earn 10 yuan, the In the third and fourth quarters, only three yuan will be earned," said the person in charge.
According to AVC data, in the first half of 2016, the volume of retail sales in China's color TV market was approximately 23.51 million units, an increase of 6.9% year-on-year, but the retail sales volume in China's color TV market was approximately 71 billion yuan, a year-on-year decrease of 4%. . With the rise of the average retail price of Internet TV in the last two years to 3020 yuan, a decline of 10.2%, the color TV industry does not increase the increase, panel makers ushered in the spring.
According to statistics from Quzhi Consultation, all mainstream panel makers except Sharp in the third quarter of 2016 realized profit, and as the price continues to rise, it is expected that profit will continue to rise in the fourth quarter.
The market will continue to show a trend of further tightening. Affected by this, the pricing of new color TVs in 2017 will increase. "The average price increase is expected to be 15% to 20%," said Liu Buchen.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, etc. on TV boxes, smart TVs, smart TV software, etc. Answering questions.
After LeTV decided to increase the price of the 4th generation of LeTV Super TV models by 100 to 200 yuan, Stormwind Group also attributed the sharp drop in net profit in the third quarter to the increase in the price of raw materials such as TV panels.
The days of the entire industry are not easy. Even traditional TV manufacturers with more resource advantages in the upstream industry chain have to face up to the decline in profits in the third quarter and worse in the fourth quarter.
At the same time, the lack of resources in the upper reaches of the city is rapidly being transmitted to the consumer end. A number of color TV companies have indicated that the promotion of the Double Eleven has been reduced. Although the already-developed models no longer “sit pricesâ€, the newly launched color TV sets The price is a foregone conclusion.
Internet TV sells a loss
“Insufficient supply is the main reason for the panel price increase. On the one hand, Samsung, Sharp and other panel makers are interested in adjusting the supply scale and product structure, specializing in higher-profit OLED mobile phone panels, and in the first quarter, Samsung’s SDC panel yield rate. On the other hand, the Taiwan earthquake has caused panel makers' production lines to be hit hard, and supply and demand have become tight.†Lu Feng TV CMO Lu Shengbo said that the increasing size of global television is also increasing the demand for panels. For each inch of LCD TVs, a 8.6-generation cable is consumed. At present, the average size of TVs in the world has increased by 2.6 inches, which means that it is necessary to add three 8.6-generation lines to satisfy. The reality is that the production line has not only increased but also closed down.
According to the IHS Markit monitoring, in the first quarter of 2016, due to the increase in China's capacity and seasonal market demand, the panel supply exceeded 20% of demand; in the second quarter, the market adjusted itself and demand began to rise gradually; in the third quarter, Supply and demand conditions have started to become tight, with supply exceeding only 10% of demand; supply is expected to exceed only 8% of demand in the fourth quarter. According to the panel price of the international market updated on October 19, the 40-inch 1080P Full HD LCD TV panel had a maximum increase of US$17, which was quoted at US$135, and its rise was equivalent to RMB115.
The panel accounted for more than 65% of the cost of the whole machine, and this increase caused pressure on the Internet TV manufacturers who have been playing the "price butcher."
“In the past, a 40-inch TV panel was able to receive 90 US dollars. According to the current price of US$135, the actual panel cost increased by US$45, equivalent to RMB 304. The current trend is that the price of the panel is only higher. The highest is.†According to an Internet TV industry activist, the 40-inch Internet TV has a price of more than RMB 1,000. The increase of RMB 304 means that the more you sell, the more you lose.
"The Internet brand has been losing money. Now it's a question of how much it's losing. Can we afford it, but we can't sell it? This means that it affects the capital chain." The industry source revealed to reporters. Because it did not get more panels, the brand's sales on its own holiday sales were affected.
Double 11 is one of the most important battles for users of Internet TV. The rise in raw materials hit consumers’ eager concessions, and LCD TV makers are enemies. “TVs and mobile phones are consumables, prices tend to fall, and prices are unlikely to increase, but if you take this year’s double 11 discount and double 11ã€6·18 in previous years and the manufacturers’ own festivals Compared with this year, the double 11's price discount rate is reduced.†Liu Buchen, a veteran home appliance analyst, has a greater impact on Internet TV in the low-end market. The price of TV has tended to be more costly and its profit has become thin. There are many losses, and the double eleven must bite the bullet. â€
Kill a thousand self-defeat eight hundred
The impact of material price increases on the whole machine manufacturers has been highlighted. According to the third quarter 2016 financial report released by Storm Group, the company achieved operating revenue of 4.02295 million yuan in the third quarter of 2016, an increase of 203.99% over the same period of last year. However, net profit decreased by 97.16% to 487,600 yuan. The operating loss for the third quarter of the storm was 145 million yuan, and the operating profit for the same period last year was 16.89 million yuan.
For the decline of profits, Stormwind Group gave an explanation. One of the important aspects is that the launch of Storm TV's new products and marketing promotion have increased the cost. Among them, the price of raw materials such as TV panels has risen sharply, which has also led to a substantial increase in costs.
Panels dragged down the storm group performance, storm TV is difficult to profit, in the eyes of the industry seems to be quite bustling, sadness of a sense of desolate, but for an Internet company, the initial development of strategic investment losses can be understood. Lu Shengbo responded that sustainable management, quality growth and innovative products are the values ​​of Storm TV. Storm TV does not advocate simply shifting costs to consumers. It will insist on more sustainable methods to control costs and improve Industrial efficiency. The 45-inch Storm Super TV and the host-upgradable TV launched by Storm TV are the solutions to the rising costs of Storm TV.
After the price of TV panels continued to rise, even if it is focused on playing ecology and not relying on hardware, LeTV has also increased the prices of the fourth-generation LeTV models by 100 yuan to 200 yuan. LeTV 2016 semi-annual report shows that LeTV’s LeTV’s first-half net profit loss was RMB 51.87 million.
From the latest data provided by LeTV on November 9th to reporters, from July 3, 2013 to the end of October 2016, LeTV sold nearly 9 million units.
"A large part of the decline in profitability of color TV companies is attributed to the low price of LeTV. However, its new profit model has not made a profit contribution to LeTV. Instead, it has given color TV companies a lesson. Everyone imitates the music and nurtures. The content charging model is unshakeable while sticking to the strategy of earning money through hardware.†Liu Buchen told reporters that there are not many companies that directly increase their price, such as LeTV. More companies are upgrading their product structure to improve the opportunities for high-end TVs, including 4K and smart phones. Take up, or increase pricing when you push new products.
LeTV’s new CEO, Liang Jun, explained in a circle of friends: “Super TVs after price increases will still insist on eco-subsidy hardware and negative-profit pricing; they still insist on high allocation and will not reduce costs by reducing configuration; they will continue to stick to the big screen. Users operate, improve their ecological cash-generating capabilities, and better subsidize hardware costs."
Each company faces headwinds when it comes to increasing costs, either attacking a market, creating a new price segment, or creating a new product category. Under the background of rising costs, the price war has become a double-edged sword, killing one enemy. Since the loss of 800. It is undeniable that LeTV’s price increase rate has given the market a two-difficult question. Even if major TV companies want to raise prices, they must consider whether they exceed LeTV’s price increase rate of RMB 100-200, because once they exceed it, they are likely to lose. Market initiative. Traditional TV manufacturers:
Pain and happiness
Because of its own R&D capabilities and factory manufacturing capabilities, traditional TV manufacturers, who have taken the upstream resources of the supply chain firmly in their hands, are more prone to the rise in raw materials prices than Internet TV. “Even if it is to find a foundry, due to the large volume of processing by traditional TV companies, the foundry will meet these companies first and then meet the Internet TV companies.†Wei Qi, an analyst at GFK Black Power, believes.
“The panel prices reflect the company’s market control capabilities, resource allocation capabilities, and product competitiveness. Haier’s TV panels come from suppliers such as Samsung and BOE, and strategic partners exchange resources for resources. Haier’s procurement panel The price is more competitive.†According to Haier’s responsible person, Haier has already fine-tuned the prices of some TV models due to panel price increases. In this year's double-tenth, Haier TV will not be positioned in the price war. Instead, it will optimize the user experience through multiple online and offline scenarios to give users more product value discounts.
For the industry’s rumors that traditional TV makers have taken the opportunity to hoard their panels in an attempt to suppress Internet TV, the responsible person stated that the supply and demand relationship of the panels follows a regular pattern. For example, the 32-inch panel was oversupply last year, from US$90 to US$48 once. Manufacturers continue to reduce production, even if the 32-inch panel rebounded to 74 US dollars in October this year, the price is relatively acceptable. Traditional TV manufacturers have been working in the industry for many years and have their own resources and market observation capabilities. Some traditional television manufacturers including Haier have already made resource reservations.
Even so, traditional TV manufacturers still face the dilemma of falling profits. “The profits of the major manufacturers’ third quarter earnings compared to the second quarter have declined. The figures in the fourth quarter earnings report are expected to be even more ugly, and their profitability will continue to decline. If we say that the first and second quarters will earn 10 yuan, the In the third and fourth quarters, only three yuan will be earned," said the person in charge.
According to AVC data, in the first half of 2016, the volume of retail sales in China's color TV market was approximately 23.51 million units, an increase of 6.9% year-on-year, but the retail sales volume in China's color TV market was approximately 71 billion yuan, a year-on-year decrease of 4%. . With the rise of the average retail price of Internet TV in the last two years to 3020 yuan, a decline of 10.2%, the color TV industry does not increase the increase, panel makers ushered in the spring.
According to statistics from Quzhi Consultation, all mainstream panel makers except Sharp in the third quarter of 2016 realized profit, and as the price continues to rise, it is expected that profit will continue to rise in the fourth quarter.
The market will continue to show a trend of further tightening. Affected by this, the pricing of new color TVs in 2017 will increase. "The average price increase is expected to be 15% to 20%," said Liu Buchen.
Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, etc. on TV boxes, smart TVs, smart TV software, etc. Answering questions.
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