LCD panel pricing continues to plummet due to demand-supply mismatch

In February 2022, the prices of 43-inch, 50-inch, 55-inch, and 65-inch LCD TV panels decreased by 1.4%, 2.3%, 2.7%, and 2.7%, respectively, to $38, $68, $85, $109, and $179 per piece, according to data from Omdia. Among these, 32-inch panel prices have dropped 64% compared to prices from January last year.

Statistics from Sigmaintell (via My Drivers) show that the price of LCD TV panels in the first quarter of 2022 will maintain a downward trend. A cumulative decrease of 5% to 8% in Q1 2022 for small-size panels is expected, while medium and large panels could see price falls cross 12%.

LCD panel prices actually skyrocketed starting in 2020 and continued to do so until 2021. From the second half of last year, LCD TV prices fell more than 25%.

Seeing high price volatility, Korean display manufacturers LG and had earlier decided to withdraw from the LCD market due to associated risks. Samsung had actually announced the halt of LCD panel production back in early 2020, but the subsequent hike had caused it to decide otherwise.

Similarly, Zheng Haorong, president of LG Display, revealed in an interview that the company’s LCD TV panel factory in South Korea will be closed by the end of 2020.

During this time, Chinese display manufacturers such as TCL and BOE cut down LCD TV production and started favoring the more profitable OLED space. At present, large-size LCD panels are in a situation of oversupply. Their pricing will only stabilize after supply and demand will achieve balance.

Although now, it appears too soon to say that and LG will indeed be withdrawing from the market completely.



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