Over the past few months, we’ve been covering behind-the-scenes news in the TV industry that screen prices have been constantly dropping, which could mean a significant drop in TV prices later in the year. That’s because now-produced televisions, from components that have fallen in price, will be on shelves at the end of the year — ready for big sales events, including Black Friday. This means that the discounts may be deeper than usual.
We’ve already seen signs of that – the price war between LG and Samsung has been escalating faster than usual.
And now three reports in Digitimes indicate that the events that drove down prices have barely begun. Or not, There is confirmation that the price of LCD monitors has continued to decline this month (Opens in a new tab). Then, there is a report Samsung plans to reduce the number of TV screens it orders (Opens in a new tab)which means there may be a surplus of monitors from manufacturers that they will want to sell cheap.
Finally, there is a report that LCD makers have cut production numbers (Opens in a new tab) In the face of order cuts just like Samsung, however, has not cut it far enough, once again confirming that there is likely to be an excess of screens.
There are other factors that affect final TV prices beyond the cost of screens – chips required, shipping costs etc – but it’s a big factor, and the emergence of these three stories all so close together is a sign that there will be a lot of downward pressure on prices.
Well, this is for LCD TVs at least. Things are different for the best OLED TVs, because there is no competition for who makes the panels. All OLED TV screens essentially come from one company – LG Display – which means they have more control over production and pricing.
Analysis: Why lower demand for screens means cheaper TVs
The reason we’re sure the three news stories above mean that cheaper TVs are good supply and demand. When a lot of people want something you sell, you can charge a higher fee for the limited number you have. When people aren’t buying what you’re selling, you need to bring the price down to try and encourage people to eat it.
during the pandemic, Everyone He was buying TVs. 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 great new TV. They don’t need another one yet, so TV sales are a bit low overall these days. TV companies prefer it not to be so, so we saw big discounts on last year’s TVs still on shelves, and we’re seeing earlier-than-usual discounts on 2022 TVs — to try and buy a new, more tempting TV.
If fewer people are buying TVs, that means companies don’t need to make much, which is why Samsung has lowered its orders for screens. If manufacturers make a lot, they have spare screens, which have no inherent value. To get rid of these screens, they drop the wholesale price.
This in turn means that TV companies can offer even Larger discounts. The pressure of lower prices comes from both sides – from the retail side to change existing TVs, and from the manufacturing side because TVs are cheaper to manufacture.
With the cost of living crisis likely to get worse, hopefully this will provide at least some relief for the people who will need a new TV this year – you’ll be able to save some money, or maybe even become a bigger or better model for the same money. That should make our guides to the best TVs under $1,000 and the best TVs under £1,000 very exciting…