Global TV makers are affected to experience disruptions to their production up until May this year on account of the coronavirus, also known as COVID-19, according to industry sources on Mar. 6.
During the months of February and March, manufacturers are estimated to have suffered production losses of up to 30% a month, they added. Losses in May are expected to amount to at least 15%.
China-based Xiaomi said it will be cutting its domestic TV supplies by 20% this month, and between 10-15% in April this year. In 2019, the company was the world’s fifth-largest TV maker.
Despite the cuts, Xiaomi has not downsized its annual TV shipment goal, as it expects the markets to recover beginning in June. To help support the figures, Xiaomi plans to more avidly make inroads into emerging markets such as India and Southeast Asia. In the fourth quarter of this year, it is looking to enter the North American market.
Meanwhile, TV panel prices rose in February to add to the sector’s woes. This was mainly due to the fall in plant operation rates caused by the coronavirus that led to a decline in production. Panel makers are currently placing priority on supplying top-tier TV makers, indicating that lower-tier makers will have a tough time due to the shortage.
According to Walmart of the US, it has not suffered any problems in its TV supply chain yet, but does see a big chance of its pipeline inventory drying up after mid-April. If the virus is not contained within this month or the outbreak reaches further, inventory may be gone altogether, according to market watchers.
Samsung – the world’s largest TV maker – has been less-affected by COVID-19. Except for its China-bound products produced on-spot in Tianjin, most of its TV-making facilities are in areas such as Mexico, the Czech Republic and Hungary. Domestic market products are produced from Vietnam. These are all areas that have not yet been hard hit by the coronavirus, or are not under its affect altogether.
Due to the sluggish market conditions, the Chinese market is expected to work together with the Beijing government to trigger TV consumption, particularly during the 618 shopping festival. Government subsidies and other economy-revitalization policies are expected to be released in tandem.
Despite these plans, dampened consumer sentiment, along with whether Tokyo would be able to pull off the Olympics in July remain as factors fanning uncertainty in the markets.
The Elec is South Korea’s No.1 tech news platform.