Data from WitsView, a division of TrendsForce, found that, even though the U.S.-China trade war was temporarily put on hold, TV brands are still experiencing something of a pricing crisis because of the perceived threat of tariffs impacting their product. However, TV prices aren’t going up. Instead, according to the firm’s latest report, the threat of tariffs and subsequent delay in their implementation has driven TV prices down at an even quicker rate.
As TrendsForce pointed out, display brands and retailers preemptively stockpiled during Q2 because of fears that TVs could face a 25 percent tariff during Q3. And now, because that 25 percent tariff never actually materialized, warehouses and stockrooms are flooded with displays that now have to be cleared out to make room for new inventory.
The firm’s data found that, in particular, prices for 32-, 65-, and 75-inch TVs are being impacted the most. For 32-inch sets, prices have fallen around 10 percent, 65-inch TVs have seen roughly 25 percent price reductions, and 75-inch sets are falling in price by just under 10 percent. Meanwhile, 55-inch TVs are remaining relatively the same in price. The result there, according to TrendsForce, is that 65-inch models are now the most popular choice among American consumers.
With no signs of improvement in the market conditions, the firm expects pricing to continue its downward trend. Just how much lower brands and retailers will be able to go remains to be seen. But for a market that already has horrible profit margins, the last thing the TV segment needed is what’s happening right now.