Global TV Market Rebounds in Q2 on Rising Panel Prices

According to TrendForce's most recent projection, the global TV shipments in Q2 2023 are expected to reach 46.63 million units, reflecting a quarter-on-quarter increase of 7.5% and a year-on-year  growth of 2%. The rise in shipments can be attributed mainly to the robust stockpiling momentum of Chinese brands for the 618-e-commerce shopping festival, along with better-than-anticipated overseas sales of certain Chinese brands.

Factors Driving Growth

The surge in panel prices is the main driver of growth in Q2 global TV shipments. Panel prices for TVs ranging from 32 to 75 inches surged 10–20% higher than prices during last year's Double 11 event. This has led brands to stockpile early to mitigate overall costs. Chinese brands have been particularly aggressive in stockpiling, with Hisense and TCL both reporting record single-quarter shipments in Q2.

In addition to panel price hikes, the 618 e-commerce shopping festival in China also contributed to growth in Q2 global TV shipments. The 618 festival is one of the largest shopping events in China, and it typically sees a surge in demand for TVs. This year, the festival was even more successful than usual, with Chinese brands capturing a larger share of the market.

Outlook for Q3 and Beyond

Looking ahead to Q3, global TV shipments are projected to increase by 13.5% QoQ, totaling 52.92 million units. This growth will be driven by continued stockpiling from brands, as well as the upcoming holiday season in the United States and Europe. However, the overall growth outlook for the global TV market remains somewhat muted, as high inflation and interest rates are expected to weigh on consumer spending.

Implications for Market Participants

The surge in panel prices is a major challenge for TV brands, as it is driving up costs and squeezing margins. Brands are likely to continue to stockpile early to mitigate these costs, but this could lead to an oversupply of TVs in the market in the second half of the year. Brands will need to carefully manage their inventory levels in order to avoid price discounting and margin erosion.

In addition to the panel price hike, high inflation and interest rates are also expected to weigh on consumer spending. This could lead to lower demand for TVs in the second half of the year. Brands will need to focus on marketing and promotions to stimulate demand and maintain sales growth.

The global TV market is facing several challenges in 2023. However, the strong stockpiling momentum from Chinese brands and the upcoming holiday season in the United States and Europe should help to drive growth in Q3. Brands will need to carefully manage their inventory levels and marketing strategies in order to weather the challenges and maintain sales growth in the second half of the year.