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Panel IHS: A Victim Of Internet Brand Price

Panel IHS: A Victim Of Internet Brand Price

Dec 18, 2017

Chinese, mobile phone, television and Internet brands as financial crisis, all the Taiwan plant accounts attention. IHS, the Research Institute, believes that China's Internet brand is crumbling because of the earlier price of the panel.

IHS said that although the third quarter panel prices fell, but since last year continued to the first half of this year there is a wave of significant gains, the Internet brand is the biggest victims of LCD TV panel demand; Internet brand has a unique sales model, has a certain market space, high price regulation mode, content, advertising as the main mode of promotion to win the favor of consumers.

However, because the panel prices since last year continued to rise in the first half of this year, the panel supply is tight, foundries have also increased the price, no Internet brand manufacturing plant, if lost the support of the factory, the Internet brand also does not exist, low-cost competitive strategy also is broken.

IHS pointed out that the liquid crystal display (LCD) panel prices accounted for the cost of the whole TV 40% to 50% range, but since last year continued to the first half of this year the panel prices, longer duration, seriously affect the profit structure of TV brand, also affect the TV brand marketing strategy.

Therefore, the Chinese TV brand that has been more active in the past has adopted the conservative strategy of the conservatism, to ease the cost rise through the promotion of the TV price in the terminal market.