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Recently, LeTV announced that due to the continuous increase in panel prices, the amount of eco-subsidy hardware has continued to expand. For this reason, the price of the fourth-generation LeTV super TV models will be raised from 100 to 200 yuan from September 20, and will continue to increase after the increase. Ecological subsidies hardware, negative interest pricing.
The reporter noticed that the panel is the most important cost of the TV machine. Since last year, thanks to the opportunity for panel prices to fall, major Internet TV brands have competed for price wars. However, since the second half of this year, panel prices have rapidly recovered, and the operating pressure of major brands has been unprecedentedly high. At present, Internet TV has reached the point where it has to increase its price.
Price increases due to excess subsidy
The reporter had previously reported that Qunzhi's consulting data showed that the average price of the 32-inch panel soared by US$5.5 in July. The supply remained in short supply in August, and panel makers continued to increase the prices of 32-inch panels. The expected increase was US$7; The size of the panel also has a lot of gains. The data provided by LeTV also showed that in the past August, the price increase of 40- and 43-inch panels reached 12% to 15%.
“This year, due to the increase in the average size of the panel leading to increased cutting costs and the impact of comprehensive factors such as the earthquake in Taiwan, the supply chain of the upstream supply chain has been insufficient and panel prices have continued to rise. Although eco-TV adopts ecological subsidies for hardware and negative profit pricing, it is The panel price has risen too fast, and the amount of single TV ecology subsidies hardware has also continued to increase, which has exceeded our ability to provide ecological subsidies.†LeTV also stated in the price increase announcement that after the price adjustment, the relevant TV model is still ecological subsidies. Hardware, negative profit pricing model.
It is noteworthy that LeTV’s 2015 annual report shows that Levision, a subsidiary that primarily assumed the video terminal business, achieved sales revenue of RMB 8.692 billion in 2015, but the loss reached RMB 730 million; and in the first half of 2016, LeTV made a The new loss quickly decreased to 56.87 million yuan. This means that LeTV's price increase factor is not just a simple panel price increase.
"Let's not just because it couldn't hold on until it came to raise prices. The significance of this action is far greater than the meaning of the price increase itself. The first is to break the outside world's impression that LeTV will only play low prices, indicating its ability to control prices." Strong; second, this is to attract everyone's attention, this is the consistent practice of Internet companies; the third is that this action occurred before LeTV's '919', there should be incentives to consider sales.†Ovi cloud network assistant Zhang Yanbin, the president, believes that LeTV’s price increase will surely have an impact on the industry, but this impact is not too great. Compared to television with a price of several thousand yuan, the price increase is 100 yuan and 200 yuan.
The major brands are temporarily unable to move
Le Shizhi’s new CEO, Liang Jun, also stated in the circle of friends: “Super TV after price increase will still insist on eco-subsidy hardware and negative-profit pricing; still insist on high allocation, never reduce costs by reducing configuration; continue to adhere to the big screen Users operate, enhance their ecological cash-generating capabilities, and better subsidize hardware costs."
Faced with music prices, other competing brands have not yet followed suit. On the one hand, because the price increase rate is too small, it is difficult for a competing brand to recover its operating losses even if it follows up, and if it does not follow up, it will obviously cause more losses. Zhang Yanbin sighed in a circle of friends: “The important thing is that let LeTV not take the initiative to increase the price, but also set a benchmark for how much the price increases. If we exceed this benchmark, we lose the market initiative. Let’s look at this strategy. Give the industry and its friends a problem."
Traditional TV manufacturers may be more emboldened by LeTV’s price increase. “Traditional TV manufacturers are self-manufactured and can achieve effective allocation of certain resources and squeeze out some resources. Panel prices are also relatively more flexible and more affordable for traditional enterprises. Very fierce, TCL, Skyworth, Hisense, Konka, Changhong's profits come from the hardware, if they call for price increases that must be worth seeing, but now they are still waiting and watching, do not move.†Zhang Yanbin said.
However, after an appliance giant told reporters: “The panel price is still rising in September, so the manufacturer’s cost will be higher. Up till now, no one has stood up to increase the price. The price war in this industry has been used for 30 years. The Japanese have been beaten and the South Koreans have been beaten down, but our brothers know that whoever shouts the price increases will be unlucky."
He also said: "If the original product price increase is not easy in the television field, only by new products, new products will come out at the end of this year." In this regard, Zhang Yanbin also believes: "Even if it is a price increase, it will not Open up, will follow the way to launch new products."
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LeTV raises the price of Internet TV prices
All along, the Internet TV industry has been fighting a price war, but manufacturers have finally been unable to support it. Letv started the first shot of price increases.