Over the past few months, we’ve been covering the behind-the-scenes news in the TV industry that monitor prices are constantly falling, which could mean big drops in TV prices later in the year. That’s because TVs made now, from components that have dropped in price, will be on the shelves towards the end of the year – ready for the big sales events, including Black Friday. This means the discounts can be even deeper than usual.
We’ve already seen signs of this – the price war between LG and Samsung has escalated even faster than usual.
And now a trio of reports in Digitimes suggests that the events that caused the price drops have only just begun. First, There is confirmation that the price of LCD panels has continued to fall this month (opens in new tab). Then there is a report that Samsung plans to reduce the number of TV screens it orders (opens in new tab)meaning there may be surplus screens from manufacturers who will want to sell cheaply.
And finally, there is a report that the LCD manufacturers have reduced production numbers (opens in new tab) in the face of order cuts just like Samsung, and yet they haven’t cut them enough, which again confirms that there will likely be excess screens.
There are other factors that affect final TV prices beyond the cost of screens – the brands required, shipping costs, etc. there will be a lot of downward pressure on prices.
Well, that’s it for LCD TVs at least. Things are different for the best OLED TVs because there is no competition over who makes panels. Basically all OLED TV screens come from one company – LG Display – which means it has more control over production and pricing.
Analysis: why low demand for displays means cheaper TVs
The reason we’re so sure the three news above mean cheaper TVs is good supply and demand. When a lot of people want something you sell, you can charge more for the limited number you have. When people aren’t buying what you’re selling, you have to drop the price to try and encourage people to get them.
During the pandemic, All he was buying televisions. The best TVs were flying off the shelves as people suddenly needed a great home theater experience to stave off the boredom of lockdown.
But now? Well, everyone has already bought a nice new TV. They don’t need any more yet, so TV sales are a bit low overall these days. TV companies would prefer that not to be the case, so we’ve seen big discounts on last year’s TVs still on the shelves, and we’re seeing earlier-than-usual sales on 2022 TVs – to try and make shopping for a new TV more tempting.
If fewer people are buying TVs, that means companies don’t have to make as many, which is why Samsung has reportedly reduced its display orders. If manufacturers made too many, then they have replacement screens, with no intrinsic value. So to get rid of these screens, they drop the wholesale price.
This, in turn, means that TV companies could offer even larger discounts. The downward price pressure is coming from both sides – the retail side to displace existing TVs and the manufacturing side because TVs are cheaper to make.
With the cost of living crisis likely to get worse, this will at least provide a respite for people who will need a new TV this year – you’ll be able to save money or perhaps get an even bigger or better model for the same money. It should make our Best TVs under $1000 and Best TVs under £1000 guides very interesting…