Rising panel prices are becoming an Internet TV death threat

Recently, the sharp rise in the price of LCD panels has caused the color TV industry, which has fallen into the price war, to suffer from aggravation. Compared with traditional color TV companies, Internet TVs that survive at low prices are under greater pressure and face a life and death looting.
Unable to bear the weight of panel prices The data shows that in the past six months, the price of LCD panels has continued to rise. According to data from professional survey agencies, the maximum increase rate for the 40-inch 1080P Full HD LCD TV panel reached US$17. At present, due to the apparent lack of supply, LCD panel prices are still rising.
The LCD panel takes up more than 60% of the total cost. The rise in panel prices has directly led to a substantial increase in the manufacturing costs of enterprises, which has put enormous pressure on the color TV industry that was already at a low price. Even the giants of traditional color TV manufacturers face the difficult situation of reducing costs, reducing profits, and reducing profitability.
On the one hand, panel prices have risen dramatically. On the Other hand, the low price strategy of Internet TV brands has directly lowered the market price of color TV products. Ove Cloud Network data shows that in the first half of this year, the color TV market showed an increase in volume, that is, the increase in production does not increase income.
However, for traditional color TV companies with strong manufacturing and industrial chain advantages and strong anti-risk capabilities, face-to-face price increase for this round of wheel can be resolved through technical advantages, speeding up the introduction of new product structure adjustments, etc. The rising costs, even under the pressure of profit being compressed, are only temporary. Most internet TV brands may fall into this round of panel crisis.
The Difficulties of Internet TV Survival The Internet TV brand started the new development mode of the TV industry with Internet thinking. Many Internet TV brands woven TV content, platforms, and entrance dreams.
Compared with traditional color TV companies, the reason why Internet TV can quickly rise, the biggest weapon is the low price. To support its low prices, apart from providing part of the charges, it is the panel price that has been low for the past few years. Once the price of the panel rises, Internet TV, which originally made a loss, will accelerate losses.
Adhere to negative interest in LeTV, because they can not afford the pressure of panel prices, twice announced to increase the price of super TV. For LeTV, which has a large volume of sales and a relatively mature content monetization model, this move can ease cost pressures.
However, for most internet TV brands that lack the right of upstream resources and immature content monetization models, the low-cost model of mass-burning will be difficult to sustain if the panel is in short supply and prices continue to remain high. However, prices will lose their attractiveness to consumers and marketing gimmicks. Eventually they will have to face the fate of being eliminated.

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