According to one of my favorite analysts, Deborah Yang of Omdia, leading global TV makers, including Samsung and LG Electronics, have revised downward their shipment forecasts for the third quarter of 2024, reducing planned shipments by 10%. Similarly, leading Chinese TV makers have cut their shipment targets by 5%, resulting in an overall decline of 7% among major global TV makers.

Although Chinese TV makers made strong panel purchases in the second and third quarters of 2024, the results were not as strong as expected. Concerns about high inventories and weaker sales have caused them to pull back. In the second quarter, their panel purchases rose 3% from the previous quarter, but fell 6% from the same period last year, missing forecasts by about 4%. Unresolved price negotiations, especially over market development funds, have added to their caution.

The situation is similar for South Korean companies such as Samsung and LG. Their panel purchases increased by 11% in the second quarter compared to the previous quarter. But now they have reduced their delivery plans for the third quarter by 10%, which means that panel purchases will decrease by 6% quarter-on-quarter and 5% year-on-year.