Chinese TV manufacturers, major clients of Korean component suppliers, are purchasing fewer large-size LCD panels in the second half of this year. Under the circumstances, the suppliers’ share in the Chinese TV market is forecast to show a significant drop from 40 percent in the last quarter of 2015.
According to news sources, including market research firm IHS, the six largest Chinese TV manufacturers, that is Hisense, TCL, Skyworth, Haier, Chang Hong, and Konka, are predicted to buy 14.8 million large-size LCD TV panels in the fourth quarter of 2015. The number amounted to 17.7 million a year ago. In the first half of this year, the six companies bought 29.4 million panels to record a 15 percent growth year-on-year, but the amount fell 6 percent from a year ago to 15 million or so in the third quarter.
The curtailment is attributable to the current panel supply glut and predictions of a decrease in TV demand based on the slowdown of the Chinese economy. In China, the TV sales volume jumped 12.7 percent year-on-year to 22.93 million units between Jan. and June, but it declined the next month. Still, Chinese panel makers have increased their supply at low prices, triggering an inventory glut.
The six companies’ total LCD TV panel purchase for this year is estimated at 59.3 million units, down approximately 1 percent from a year ago. In the third quarter, LG Display took up 22 percent of the market, followed by China Star (20 percent), Innolux (16 percent), Samsung Display (15 percent), AUO (13 percent), and BOE (10 percent).