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Audio/Video | Displays
June 14, 2021

Where Are 8K TV Prices Heading?

Global semiconductor shortages caused TV prices to go haywire in 2020, but now display panel pricing fluctuation is narrowing the gap between 4K and 8K TV costs.
Andrew Nichols  
Article:
Audio/Video | Displays
June 14, 2021

Where Are 8K TV Prices Heading?

The semiconductor supply crunch has thrown a whole host of tech categories off course this year, and it looks like TVs are no exception. The ongoing COVID-19 pandemic has caused fractured manufacturing processes and raw material shortages, and has now directly resulted in increased TV prices and a major dropoff in discounting 4K and 8K displays.

At the recently completed Display Supply Chain Consultants (DSCC) business conference at DisplayWeek, NPD analyst Stephen Baker provided an in-depth look at TV sales trends in the United States. According to NPD’s data, the average selling price across all TV models increased 33% between April 2020 ($320) to April 2021 ($426). Despite this, TV sales have increased 20% to 40% on a monthly basis year-over-year, which follows the growing consumer interest in new display technologies like 8K.

While big-screen TVs have only recently begun to see price increases, mid-sized panels have become significantly more expensive. (Image courtesy of The NPD Group and the 8K Association)

Screen size has also been a factor in TV price changes, as 75-inch or larger TVs have been experiencing a dip in pricing until recently, while mid-sized TV prices have risen steadily throughout 2021. This increase in overall price is most significantly impacted by component shortages like display panels.

According to data from DSCC, before the pandemic began display panel prices were declining, with the largest panel sizes seeing the most significant savings. As the pandemic continued, display prices spiked, with the small panel market being hit the hardest. While display prices are currently recovering to pre-pandemic levels, there is a 4 month lag time between panel pricing changes and TV pricing changes, which may lead to flattened TV sales in 2021.

Thankfully, display panel pricing is now recovering to pre-pandemic levels, but don’t expect TV prices to decrease anytime soon. (Image courtesy of DSCC)

8K display prices are fairing a little better. Panel maker TCL has reported its highest 8K panel price increase is 18% this year, while its 75-inch and 85-inch screen sizes have been completely unaffected by the pandemic. Perhaps the best news comes from research firm Omdia, as its research suggests panel prices will flatten or slowly decline going forward, as shown in the graph below.

Measuring Supply Chain Impacts on Home Entertainment

The home entertainment category is especially susceptible to the supply chain crisis because there are so many individual components required. Despite that ongoing problem, the once-forgotten “home theater” category continued its strong comeback in 2021 likely driven by the ongoing house-bound public due to the COVID-19 pandemic. Download your copy today!
Most 8K display prices spiked during 2020, but now prices have begun to slowly decrease or flatline across the board. (Image courtesy of Omdia)

As the price differences between 4K and 8K panels lessen, 8K might begin to look more appealing to consumers. If the gap between 4K and 8K remains steady, more consumers may be willing to pony up the extra cash and “futureproof” their home set-ups, widening the potential market for integrators. That being said, experts still are not sure if supply constraints will continue to influence panel pricing into 2022, so keep an eye on the market in the coming year.


Editor’s Note: All of the images and charts in this article were provided by the 8K Association’s website and are originally created by The NPD Group, Omdia, and the Display Supply Chain Consultants (DSCC).

ABOUT THE AUTHOR

Andrew Nichols
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Andrew Nichols:
Andrew is a journalist and educator living in the Providence area. He was previously the Editor-in-Chief of a gaming and tech website, and the Managing Editor of his university newspaper, The Torch. He has spent the last 4 years writing and editing articles focused on the residential AV industry.
View Andrew Nichols's complete profile

ARTICLE TOPICS

Audio/Video • Displays

ARTICLE TAGS

8K • 8K Association • coronavirus • The NPD Group

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