Behind the soaring net profits of BOE and TCL Technology, there was no behind-the-scenes operation, but the law of the market. There are two main reasons behind it: first, because BOE and TCL Technology defeated Japanese and Korean panels such as Samsung and LG Manufacturing companies occupy the pricing power in the market. Secondly, during the epidemic, the demand for home office, distance education and other products has increased significantly, which has greatly increased the production demand for tablets, notebook computer displays, etc., and the output of BOE and TCL Technology has also increased significantly. increase. Based on the above two reasons, this announcement of a surge in profits was made.
Panel production has always been a fiercely competitive industry. As early as 2017 to 2019, the market has entered a cold winter because the market is saturated and has overcapacity. Not only domestic manufacturers TCL Technology and BOE, There are also Japanese and Korean companies such as Samsung and LG, so the panel production industry has always been in a cold winter. There are wolves before and tigers behind. Under this situation, BOE and TCL Technology still suffered a lot of losses in this sector in the past two years. This has also led to the recent surge in net profits of BOE and TCL, which has caused doubts among netizens.
However, luck will eventually belong to those who persist to the end. Since BOE and TCL Technology have always insisted on price wars with Japanese and Korean companies, they finally won with the advantage of low prices, and finally defeated Samsung, LG, and Panasonic. Waiting for Japanese and Korean companies to drive out of the Chinese market. Due to the advantages of BOE and TCL Technology in the Chinese market, Chinese manufacturers have controlled market pricing power in the semiconductor industry for the first time, so their profits have also increased.
Another point worth noting is that due to the epidemic, the production demand for tablet and laptop display screens has greatly increased. The surge in orders has turned the originally excess market production capacity into just enough The market production capacity has also led to BOE and TCL Technology being able to directly increase profits.
It is worth noting that although the profits of BOE and TCL Technology have surged, this is just the beginning, and more crises need to be paid attention to. After all, Japanese and Korean companies still have sufficient say in overseas markets. of! If BOE and TCL Technology want to go further, they must make further efforts to develop overseas markets.