Samsung Mini-LED/QD Price Check
Now that Samsung Electronics (005930.KS) has begun to market its 2022 Mini-LED/QD TV line we have two data sets to compare, and in an unusual environment. On the positive side (for TV brands) TV panel prices continue to decline, which is usually the key to generating higher TV set revenue, but at the same time other component costs and transportation costs are rising, with the specter of inflation reducing consumer buying power. Typically when the yearly new TV line is released, previous year’s models decrease in price as new inventory is acquired, however if the new line is appreciably more expensive than the previous year’s models, older model demand and price can increase as consumers look for an alternative to the higher priced current year models.
This year seems different in that while last year’s models have been declining in price as Samsung released this year’s models, those declines seem to have slowed recently, with charts for last year’s model prices beginning to level off and new model prices declining at a slower pace than last year. We expect this has little to do with ‘alternative’ pricing and more to do with component and transportation costs that are more than offsetting TV panel price declines. 2021 models are still down 7.5% YTD, but such declines seem to be slowing and prices leveling off. New model prices are also declining as expected but so far at a slower rate than last year, likely for the same reasons. All in what looked like a good year for TV set sales now is beginning to look a bit less so as COVID-19 lockdowns in China and continuing shortages are wiping out some of the positives that would help the TV set space this year
This year seems different in that while last year’s models have been declining in price as Samsung released this year’s models, those declines seem to have slowed recently, with charts for last year’s model prices beginning to level off and new model prices declining at a slower pace than last year. We expect this has little to do with ‘alternative’ pricing and more to do with component and transportation costs that are more than offsetting TV panel price declines. 2021 models are still down 7.5% YTD, but such declines seem to be slowing and prices leveling off. New model prices are also declining as expected but so far at a slower rate than last year, likely for the same reasons. All in what looked like a good year for TV set sales now is beginning to look a bit less so as COVID-19 lockdowns in China and continuing shortages are wiping out some of the positives that would help the TV set space this year
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