TVs are getting cheaper, but sales are not coming up. What’s going on?
TV sets are now priced cheaper than ever. Especially in the past 618 festivals, the price of each size segment has reached a new low, of which the current mainstream 55-inch TV costs less than 2,000 yuan ($290), 65-inch TV enters 3,000 yuan ($436) range, etc. Although the panel price decline is the main cause of induction, to a certain extent also reflects the fierce price war in the TV industry. And such low prices have not caused the explosive growth of TV sales.
According to the China Electronics Market’s report of China’s color TV consumption from January to June 2019 and the market trend forecast for the second half of the year, the downward pressure on domestic color TV consumption increased in 2019. According to the total data, domestic color TV consumption in the first half of the year was about 22 million units, down year-on-year 4.3%. It should reach 45 million units in 2019 if believing in an optimistic estimate of sales. This is basically the same as in 2018.
As for the latest news in this industry, on July 9, Hisense launched a multi-screen TV. On July 10, Skyworth announced the price reduction for its OLED TVs, with the aim of promoting the transformation of the industry to the mid-to-high end.
Why are TVs so cheap but not sold?
Longer replacement cycle
Compared with smartphones, the replacement cycle of TV sets is much longer. If there are no quality problems, it can be used for at least 5 years or even longer. Even if the current TV sets are equipped with intelligent systems, there are certain requirements for hardware performance. But because the most commonly used are some audio and video applications, under normal circumstances, there will be no insufficient performance. Smartphones are different, and the speed of updating is very fast. Especially if you use a smartphone to play games, you may need to replace one in a year and a half.
Don’t like watching TV
In the past, we often heard that TV is no longer available. TV startup rate is declining, and young people are no longer watching TV. However, there are data showing that the TV’s operating rate has been slowly rising in recent years. But it is undeniable that the role of TV in many people’s homes is being marginalized.
No breakthrough in innovation
Nowadays, we will replace a new smartphone because of the improved performance of the camera. Even if the performance of the original phone is still strong enough, the smart TV that has been widely used now does not bring obvious breakthrough innovation in the functional experience. From the evolution of smart TV to artificial intelligence TV, many functions, including image recognition, lack practicality in practical applications.
Of course, we also see that more and more TV manufacturers are now giving TV more functional attributes. Especially with the rise of 5G, many companies make the TV as part of smart homes. We guess this will be more convenient in use and will replace smartphones or smart speakers. Although 5G is very close to us, the entry-winning geometry of TV to compete for smart homes is still unknown.
Limited image quality
The quality of the picture is the foundation of a TV. However, many TVs are not paying more attention to the quality of the picture. Low-priced TVs has no picture quality. Although in terms of appearance, the body of the TV is getting thinner and the craftsmanship is getting more and more exquisite. But the picture quality is not good enough. So the introduction of the picture quality is getting less and less at the launch conference of many new TV products.
Experience is not ideal
The addition of smart systems has not significantly improved the ease of use.