In mid-January, as the major panel companies in mainland China finalized their New Year panel supply plans and operational strategies, it signaled the end of the era of "scale competition" in the LCD industry where quantity prevailed, and "value competition" will become the core focus throughout 2024 and the coming years. "Dynamic expansion and on-demand production" will become the consensus among leading companies in the panel industry.

Considering the panel manufacturers' ability to quickly and effectively respond to changes in demand, the cyclical nature of the panel industry will gradually weaken. The complete cycle of the LCD industry, from strong to weak and back to strong, which previously lasted about two years, will be shortened to approximately one year.

Furthermore, as consumer demographics and preferences evolve, the old concept of "small is beautiful" is gradually giving way to the new trend of "bigger is better." All panel manufacturers in their planning have unanimously proposed reducing the production of small-sized panels and focusing on capacity allocation to TV models with larger screen sizes.

In 2023, 65-inch TVs accounted for a record-high 21.7% of TV sales, followed by 75-inch TVs at 19.8%. The era of the 55-inch "golden size," once considered the epitome of home entertainment, is gone forever. This signifies the irreversible trend of the TV market towards larger screen sizes.

As a top 10 professional display manufacturer, Perfect Display has deep collaborations with leading panel manufacturers. We will closely monitor changes in the upstream industry supply chain and make timely adjustments to our product direction and pricing to adapt to market changes.