Affected by the downturn in the TV market and the sharp rise in panel prices, the performance of color TVs of several companies declined. However, in the high-end market, the sales of OLED TVs in the Chinese market in 2017 increased by a factor of two compared with 2016, and the growth rate in 2018 will still reach 100%. The industry expects that huge growth space will make the competition in China's high-end color TV market increasingly fierce.
In 2017, China's color TV retail sales reached 47.52 million units, down 6.6% year-on-year, the largest decline since 2003. According to the 2017 annual report, the net profit of Hisense Electric (600060), which is the main color TV, was 942 million yuan, a year-on-year decrease of 46.45%. In TCL Multimedia, which was listed in Hong Kong, China, LCD TV sales in the Chinese mainland market fell by 2.7% year-on-year in FY2017. Skyworth Digital's net profit also declined compared with last year, while Shenkang's color TV business revenue decreased by 3.87% year-on-year.
High-end OLED TVs are growing against the market. According to IHS data, in 2017, in the high-end TV market of more than $2,500, OLED TVs accounted for 51.3% of the world's total, surpassing LCD TVs for the first time. This figure was only 15.5% in 2015 and 35% in 2016. IHS expects that in 2018, OLED TV will climb to 70.7% in the high-end TV market of 2,500 US dollars, becoming the first choice for consumers of high-end TV.
According to Yikang, the sales of OLED TVs in the Chinese market from 2017 to 2020 are expected to be 180,000 units, 550,000 units, 1.5 million units and 2.5 million units respectively. South Korea's KB Securities analysts said that in March this year, OLED TV panels have seen a 30% shortage of supply and demand.
According to IHS data, the number of OLED TVs in China will enter a period of rapid growth from the second quarter of 2018. Among them, the second quarter of 2018 is expected to increase by 118.8%, and the third quarter of 2018 is expected to increase by 120.4%. In 2019, China's OLED TV will increase by 115.5% compared with 2018.
In order to expand the production capacity of OLED panels, at the end of 2017, LG Display confirmed that it will build a world-leading 8.5-generation OLED TV panel production line in Guangzhou with a monthly capacity of 60,000 pieces (glass substrate benchmark), which is expected to be mass-produced in the second half of 2019. It is reported that this is the first overseas OLED panel production line after South Korea. Yin Yusheng, president and vice president of LG Display China, said that after the completion of LG Display Guangzhou 8.5-generation OLED factory, China is expected to become the world's second OLED TV panel production base.
OLED TV into color TV business income "cow"Industry analysis, the growth of OLED TV in the high-end market, on the one hand to meet the consumer's gradually improving quality of life needs; on the other hand, it has also brought new profit growth points for TV manufacturers.
Data shows that as the first domestic OLED TV company, Skyworth's 2016~2017 financial year report shows that in the context of the overall slowdown in domestic TV market demand, high-margin, large-size products have greatly reduced the industry's average selling price fluctuations. The impact of corporate profits, including Skyworth 4K smart TV sales in the Chinese market increased significantly to 45.9%, sales increased by 53.6%.
It is reported that a total of 13 TV manufacturers including Sony, Panasonic and other Japanese manufacturers, LG Electronics and other Korean TV manufacturers such as Skyworth, Konka and Changhong have joined the OLED camp, which covers almost all major TV companies in the world. Li Shangxun, vice president of marketing and marketing of LG Display, told the Guangzhou Daily newspaper that a Chinese brand and Japanese brand TV manufacturers will join the OLED camp this year. According to IHS statistics, the contribution rate of OLED TV to TV manufacturers' revenue is increasing. Sony's overall TV revenue in 2017 is 21% higher than 2016, while OLED TV contribution rate is 8%. LG Electronics' overall TV revenue in 2017 is compared to 2016. The annual growth rate is 9%, and the contribution rate of OLED TV is as high as 52%.
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