According to the latest survey data released by China Medical, global panel prices have bottomed out since the second quarter of this year. Including BOE, Innolux, AUO and other panel companies, the market has obviously recovered since the second quarter, and the supply of products is in short supply. It is understood that the current tight supply of global TV panels may continue into the third quarter of 2016. This is bound to have a certain impact on Internet TV, which focuses on the "low-cost" strategy.
Millet split TV
Internet TV manufacturers rely on low-cost hardware to profitably promote profitability even through negative profit. They establish a user scale advantage, and then use other models such as software, services, and even advertising. However, people in the industry believe that although Internet brands do not rely on hardware to make profits, the pursuit of "micro-profits," "zero profit," and "negative profits" on the price, but the pressure brought about by rising costs at the supply chain side is no exception.
According to a report released by Ove Cloud.com in the first half of 2016, the forecast of the inventory and trend of the Chinese color TV industry market shows that in the first half of this year, the overall price of color TVs dropped by an average of 10% year-on-year. However, as panel prices rise, color TV prices will increase in the second half of the year. Related professionals believe that color TV manufacturers should not adopt a direct price increase model, but use the opportunity to adjust the product structure to upgrade, including 4K, smart and other high-end TV Share, or increase pricing when pushing new products. As well as building content and activating paid members for profitability. But there is also a more ingenious product strategy that can avoid panel price increases and complete product upgrades.
That is split TV. Smart TV consists of three components: screen, audio, and motherboard. The motherboard's "IQ" determines how high-definition video you can watch, play cool games, and install cool apps. The motherboard costs about 20%, and the screen costs about 70%.
The manufacturer that pioneered split television was Xiaomi TV. Its founder Wang Chuan once said, “We are a brand that must innovate before it can attract market attention.†In October 2015, Xiaomi was the first to introduce millet TV 3-part TV. The host and the screen are completely separated. When the television needs upgrading, there is no need to replace the screen that accounts for 70% of the cost of the TV. To upgrade the console at a very low cost, your TV can keep up with the trend of technology. The introduction of split millet TV made other manufacturers follow suit, but subject to their large traditional R&D system, the ship was difficult to turn around, and the response was clearly slower. However, I believe that after nearly a year of preparation and adjustment, before the peak season of this year, TV companies should launch split TV, because this is a good way to solve the panel price increase. As a pioneer in split TV, Xiaomi TV should have new innovation strategies to cope with market changes.
According to the data, the panel price increases are relatively small and medium-sized, such as 40 inches and 43 inches. Most of the internet brands' product lines cover these two sizes. For manufacturers whose main dimensions are 40 inches or 43 inches, they will face the risk of industry reshuffling. The millet TV, which is the leading brand of Internet TV, covers 43 inches, 48 ​​inches, 55 inches, 60 inches, 65 inches and 70 inches. It can be seen from this that the millet TV is mainly concentrated in the size of the medium and large. Therefore, the panel price increase is not significant for Xiaomi. Millet TV should think about how to continue to be the boss of this market after creating split TV.
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