Blog from November 2022

TV

LCD TV Panel Prices Hit Bottom in September, Rebounding in Q4

November 7, 2022

After fifteen months of decreases, LCD TV panel prices finally hit bottom in September 2022 and prices for several sizes increased in October. We now expect to see a modest increase in prices through the end of the year with prices plateauing in the first quarter above their all-time lows. The last phase of the downward spiral in panel prices was characterized by a massive inventory drawdown in the display supply chain and a corresponding massive reduction in fab utilization by panel makers. With some panel makers delaying to resume production until prices increase, the industry has seen prices edge up toward cash cost levels.
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TV

US TV Inflation Stays Negative as Overall Inflation Continues

November 14, 2022

In October 2022, headline inflation numbers in the US continued their slow but steady decrease from their highest point in more than 40 years. Meanwhile, the steep declines in LCD TV panel prices that started in the second half of 2021 are continuing to flow through to retail and resumed their downward trend after a one-month pause in September.
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Mobile

Apple Warns on Supply of iPhone 14 Pro and iPhone 14 Pro Max

November 14, 2022

Apple issued a notice last week on their website noting that COVID-19 restrictions have temporarily impacted the primary iPhone 14 Pro and iPhone 14 Pro Max assembly facility located in Zhengzhou, China. The facility is operating at significantly reduced capacity. The Foxconn facility in Zhengzhou China has been dealing with a COVID-19 outbreak since mid-October that has caused panic among many of its workers.
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Financial

Q3’22 Flat Panel Display Financials Highlight Wide Gap Between LCD and OLED

November 21, 2022

Now that all of the industry’s flat panel display makers have reported their Q3’22 financial results, we update our industry profile. The third quarter showed a gaping chasm between OLED-focused display makers, especially Samsung Display, and the companies focused on LCD technology. For LCD makers, it was the worst quarter in years and perhaps the worst ever. Meanwhile, Samsung Display recorded its highest profits ever in the first quarter after it discontinued LCD production.
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TV

2022 Black Friday Deals Setting New All-Time Lows for TVs

November 21, 2022

The central promotional event of the holiday season happens this week, and retailers will be offering all-time low prices for TVs during Black Friday. The unprecedented decline in LCD TV panel prices continues to flow through to retail prices in the US, and the competition from LCD is also pulling down OLED TV prices, which are also hitting all-time lows.
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Display Equipment

Display Equipment Spending Cut Significantly as Panel Demand Outlook Remains Weak

November 28, 2022

Panel suppliers are mostly delaying new capacity decisions given the weak market conditions in the display market. The situation is particularly dire in LCDs where LCD TV panel prices approached marginal cost levels and BOE’s Chairman indicated they won’t build any more LCD TV fabs, resulting in the cancellation of B17+ and its removal from our forecast. The weakness in LCDs also spread to OLED spending since there is an oversupply there also and most OLED manufacturers also produce LCDs and are currently losing money. Samsung Display is the exception as it earned record OLED operating profits and operating margins in Q4’22 helped by strong iPhone 14 Pro/Pro Max demand and LG Display’s challenges getting qualified for the 14 Pro Max.
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TV

Samsung Lost Ground in Advanced TV Market in Q3’22

November 28, 2022

After a weak Q2’22, the combination of macroeconomic and geopolitical events continued to hinder growth for the Advanced TV market, according to the latest update of DSCC’s Quarterly Advanced TV Shipment and Forecast Report, now available to subscribers. Samsung struggled through a difficult quarter, losing both unit and revenue share while its three biggest competitors – LG, Sony and TCL – all gained share.
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