Fun with Data – TV Sets in China
2021 was a difficult year for TV brands. Panel prices continued to rise through the 1st half of the year, and while they began to fall in July other component costs, including transportation and logistics, continued to rise along with the overall rate of inflation, slowing consumer demand. This has continued through the first half of this year making y/y comparisons difficult, despite declining TV panel prices, which tend to be the largest part of BOM. On a comparative basis Chinese TV set unit volumes declined by 6.12 y/y in 1H ’22 but more importantly TV set sales declined 10.6% to $7.87b against last year’s $8.8b, reflecting lower set prices and the lower volumes.
Much has been said about how the increase in TV set size portends continuing growth in TV set sales under the theory that larger sets carry a higher margin, but that growth, at least in terms of units was muted this year, with share growth of only 2.1% in the 65” and larger category, while units declined by 4.1%. As we expect at least some 2H half/half growth for TV sets in China for this year on a seasonal basis, there should be a bit of additional unit growth in the 65” and over category, but with the continuing decline in panel prices we expect the value of those sales to decline again h/h.
Much has been said about how the increase in TV set size portends continuing growth in TV set sales under the theory that larger sets carry a higher margin, but that growth, at least in terms of units was muted this year, with share growth of only 2.1% in the 65” and larger category, while units declined by 4.1%. As we expect at least some 2H half/half growth for TV sets in China for this year on a seasonal basis, there should be a bit of additional unit growth in the 65” and over category, but with the continuing decline in panel prices we expect the value of those sales to decline again h/h.
China - TV Set Size 1H 2021 - 2022 - Source: SCMR LLC, AOWEI Cloud
RSS Feed