Shoppers Are Buying Bigger TVs as Panel Prices Fall

Mike Wheatley

Analyst firm WitsView says Americans are upping the ante when it comes to the preferred size of their TVs. The most popular screen size among U.S. consumers is now 65-inches, up from their previous preference of 55-inch screens, which is a trend most likely being driven by falling prices of larger displays.


"Due to a drastic fall in prices for 65-inch TV sets, the TV size of choice hung in the living rooms of North American families have moved up from 55 inches to 65 inches, causing demand for 55-inch products to stagnate," Iris Hu, an analyst with WitsView, said in a statement.

WitsView said prices of 65-inch TVs had fallen considerably in recent months due to brands pre-emptively stocking up on their inventories in the second quarter over fears the U.S. government might impose a 25% tariff on such goods. The increase in stock has now led to an oversupply situation in the U.S., and WitsView said prices could fall even further with new 10.5G and 11G production facilities due to come online soon in China.

With display makers including BOE Display and Shenzhen China Star Optoelectronics Technology (CSOT) both ramping up production with their Gen 10.5 and Gen 11 line expansions, the supply of 65-inch and 75-inch panels will “far surpass the needs of customers”, WitsView said. That can only mean one thing – prices will fall even more.

“CSOT had to drive prices down to appeal to customers in order to keep the flow of shipments steady after its Gen 11 line began mass production in May, causing the 75-inch market to drop by 7-9% and ASP to crash below the US $400 threshold in June,” WitsView said in a report.

The analyst firm said the net result of this oversupply is that consumers will increasingly opt for larger screens. And with the emergence of new display technologies including 8K resolution, which is more practical on a bigger screen, the trend is unlikely to decline any time soon, WitsView predicted.