Global TV Market Slump Expected to Continue
Premium TV prices are falling noticeably as domestic and foreign companies are in price competition in response to sluggish demand.
UBI Research, a market research company, conducted a survey of retail prices of 65-inch premium TV models from Samsung Electronics, LG Electronics, and Sony at stores of Best Buy, a U.S. retailer, in October. The results of the survey showed that their prices fell by US$800 on average from six months ago.
As global macroeconomic uncertainties have grown, TV sales have shrunken, which have had a negative impact on TV prices, analysts say. In particular, UBI Research explains that the more expensive a TV model is, the sharper its price drop is. The price of Samsung Electronics’ QLED TV (model name: QN90B), which was launched at US$5,000 in April, dropped to US$3,800 in October. During this period, LG Electronics’ OLED TV (model name: G2) decreased from US$3,200 to US$2,200. They say that it is quite unusual for premium TV prices to drop less than a year after their release.
Korean home appliance makers have a long face because they are forced to lower their TV prices, although their cost burden is increasing due to the Korean won's depreciation and logistics costs. The Qatar World Cup will kick off on Nov. 21 and Black Friday, the largest consumer event in the United States, will begin on Nov. 25. Although demand is expected to rise thanks to the two main events, their profit margin is unlikely to be as high as before. Samsung Electronics and LG Electronics, the world’s top players, have already started discount events for major home appliances, including TVs, about one month before Black Friday.
According to TrendForce, global TV shipments in 2022 are estimated at 202 million units, down 3.8 percent from 2021. This is the lowest shipments in the last 10 years. A dominant view among TV market insiders is that the TV market slump will continue next year as well. The market research firm predicted that global TV shipments in 2023 will hit 201 million units, down 0.7 percent from this year’s forecast.