We have enjoyed many years of stability with our electronic components and raw materials and, as a result, have managed to keep our VideoPak pricing stable (and even reducing our pricing on many occasions) for many years.
However, as we enter Q4 2016, things are starting to go a little crazy.
Whilst pricing for the majority of the electronic components are remaining stable (battery, PCB, Flash memory, speaker), the pricing for the ‘hero’ component of the VideoPak – the LCD screen – is rather volatile in marketplace.
Since May 2016, we have seen screen prices begin to increase and continue to rise.
Supply for our traditional screens sizes is becoming unstable with pricing for ALL screens on the up!
Why?
As the demand for TV panels is increasing year on year, there is less focus on LCD screens for promotional use (Video Brochures). As a result, the glass manufacturing factories have their concentration on TV panels and also OLED screens (rather than LCD) with less output of small digital screens.
In addition to this, the screen size on mobile devices (in particular Smartphones and Tablets) are getting bigger, furthering the lack of demand for the small, promotional screen.
As a result of the low demand for the ‘small screen’ in comparison to the larger TV and tablet screens, the supply of the screens in the marketplace is scarce, pushing the pricing up.
This situation however will create new opportunities for new and emerging manufacturers of smaller LCD screens (1.5″ to 7″). As the bigger, well known players exit the market, fresh manufacturing talent will emerge.
For now, until the LCD screen market stabailses, there will be continued uncertainty around not only pricing of LCD screens, but also supply.
What are we doing about this?
Whilst this global challenge will cause a bit of a bumpy ride for all Video Brochure producers, we will be doing all we can to regulate the price fluctuations, including pre-purchasing and stock holding our best selling, LCD screens (such as 4”HD and 7”HD screen) where we will have enough stock to ride through to 2017.
Come the new year (and in particular, Chinese New Year) we will need to re-assess the market.
Please get in touch if you would like to know more. And do be sure to have your pricing confirmed with your VideoPak sales contact when you are ready to place your order, as out of date quotations and price sheets may no longer be valid.
The VideoPak team.
