TV foundry market 2019 summary in the first half of the year: shipments decreased by 8.9% year-on-year
In the first half of 2019, the global OEM market was even more bleak in the downturn of the global TV market. According to statistics from Sigmaintell, the total shipments of the world's 16 largest TV manufacturers in the first half of 2019 were 39.24 million units, down 8.9% year-on-year and 24.3% quarter-on-quarter. In terms of the performance of OEM shipments, domestic demand in mainland China is weak, and export demand remains relatively strong, with Europe, Middle East, Africa and North America increasing significantly.
Sigmaintell believes that the decline in the industrial market in the first half of the year was mainly due to the following factors:
First, the global political and economic environment has become more volatile. The tariff policy changes of the major exporting countries represented by the United States and India have interfered with the shipping rhythm of the foundry market. Especially for the independent foundries with weak global production capacity, their order fluctuations have intensified.
Secondly, more regional markets in the world have begun to popularize smart TVs, and the weak system development capabilities of independent foundries have led some OEM orders to move from independent foundries to brand manufacturers.
Thirdly, orders for outsourcing OEMs of international brands such as Samsung Electronics and LGE have fallen, which has had a direct impact on the performance of some foundries.
Finally, the performance of the Chinese market was weak, especially the “6.18” promotion was not as good as expected, and the OEM orders for domestic customers began to drop sharply in June.
Panel prices fell rapidly and product structure upgrades accelerated
In terms of size, with the rapid decline in the price of TV panels and the adjustment of the sales price of the whole machine, the product size structure of the foundry market is undergoing major adjustments. Especially in the second quarter, although the 32" in the emerging market is still the main size, the proportion of medium and large size demand of 43" and above has increased significantly, and the market share of 43", 50", 55" and 65" has increased significantly. With the enhancement of the 43" panel supply capacity in the future, it is expected to quickly occupy a small size of 40" and below.
The second echelon manufacturers are eye-catching
The shipping performance and ranking of the world's major TV OEMs in the first half of 2019 are as follows:
Foxconn (FOXCONN) shipped 5.99 million units, ranking first, down 17.4% year-on-year. The sales of its own brand Sharp terminal has experienced a sharp decline, and the foundry business is under greater pressure.
TPV shipped 5.72 million units, ranking second, down 17.8% year-on-year. Philips terminal sales performance was poor, overall demand fell significantly year-on-year, while LGE, Vizio, BBY and other brand customers decreased, and shipments in the first half of the year maintained a significant decline.
TCL SCBC shipped 5.13 million units, ranking third, down 2.4% year-on-year. Xiaomi maintained steady growth, shipments in North America and Europe slowed significantly, and shipments in Asia Pacific, Latin America and Middle East Africa continued to grow.
Zhaochi (AMTC) shipped 3.47 million units, ranking fourth, up 24.1% year-on-year. Domestic sales strengthened strategic cooperation with brands such as Xiaomi and Haier, and at the same time sought the growth of its brands; the export market won the "Black Friday" orders in North America and maintained strong growth. At the same time, Zhaochi has laid out the production and production capacity of borderless TV production lines and intelligent machines in advance, and achieved contrarian growth in a downturn environment.
KTC shipped 3.23 million units, ranking fifth, up 19.3% year-on-year. Kangguan has a relatively stable cooperation with local brands in overseas markets, and the export markets such as Asia Pacific and Latin America are growing steadily. In terms of brand customers, although the LGE cooperation is over, it is possible to establish a cooperation with the new brand voice.
Huike (HKC) shipped 3.17 million units, ranking sixth, down 1.9% year-on-year. The share of domestic brand customers has been lost, especially the cooperation of Xiaomi has been greatly reduced. The export market is mainly engaged in emerging markets such as Asia, Africa and Latin America. Huike is supported by upstream panel resources, and the price of the whole machine is cost competitive, but it still needs to work hard in product research and development and quality control.
BOE GT (BOE VT) shipped 3.1 million units, ranking seventh, down 37% year-on-year. The decrease in orders from Samsung Electronics and LGE, the main customers, has had a big impact on Gaochuang. Overseas markets were affected by tariff policies, and shipments in Asia Pacific and North America fell sharply year-on-year. However, Gaochuang actively strengthened cooperation with domestic brands Xiaomi and Huawei to resume growth.
Express Luck shipments reached 2.45 million units, a significant increase of 27.4% year-on-year, ranking eighth. The color media has been deeply entrenched in the European market and maintained steady growth. Latin America has seen strong growth in the first half of the year. At the same time, MMS also seeks cooperation with domestic customers.
Amtran shipped 1.99 million units, a 43% increase year-on-year, ranking ninth. Ruixuan maintains a solid cooperation with Xiaomi, and the mass production of the Vietnam plant will facilitate the expansion of its overseas business in an environment with changing tariff policies.
Innolux shipped a total of 1.71 million units in the first half of the year, ranking in the top ten. In cooperation with Vizio, and the demand for Xiaomi is expected to increase further, and strengthen the OEM cooperation with Japanese brands, it is expected that shipments will maintain strong momentum in the future.
Other TV foundries, according to Sigmaintell's "Global TV OEMs monthly shipment analysis report" data show that in the first half of 2019, Kai Yue (SQY) shipped 1.25 million units, an increase of 29%. China New Technology (CNC) was dragged down by the capital chain problem, and production stopped. In the first half of the year, shipments were only 420,000 units, a significant drop of 88% year-on-year. Compal shipped 870,000 units, a year-on-year increase of 24.3%.
Shipment and year-on-year situation of the world's 14 largest TV manufacturers in the first half of 2019 (unit: million units,%)
Independent foundries face double pressure and coexistence
The overall performance of the global TV market is sluggish, the trading environment continues to be turbulent, and the independent foundries in which it is located are in a difficult situation, and this year is even more “double pressure”:
On the one hand, independent foundries, especially foundries in mainland China, have obvious weaknesses in the globalization of distribution and are passive in future market competition.
On the other hand, the pressure comes from the brand's subcontracting of OEM orders. Under the pressure of BP, brand manufacturers, with strong R&D and manufacturing advantages, have intensified their efforts to compete for overseas OEM market, which will form a double for independent foundries. pressure.
Sigmaintell believes that under such a severe competitive environment, independent foundries should start from both short-term and long-term perspectives:
In the short-term, it is crucial for OEMs to increase their response speed and efficiency in the face of uncontrollable market environment changes. Combined with its own resource advantages, it transforms the uncontrollable “risk” into a controllable “machine”.
In the long run, OEMs should strengthen their macro analysis and strategic layout capabilities for the industry. Focusing on the world, it is more important to make a long-term strategic layout than to gain a loss in the next city. At the same time, we must spare no effort to improve our comprehensive competitiveness, including: manufacturing management level, cost competitiveness and quality management capabilities.