Since the fourth quarter of 2025, memory prices have been on a sustained upward trend. The persistently high cost of memory has significantly increased cost pressures for television set manufacturers, intensifying concerns within the TV industry about retail performance. Consequently, stabilizing costs has become a much higher priority in TV product development, and a shift towards lower panel resolution specifications aligns with this cost-reduction objective.
The 55-inch FHD panel is a product developed by brands to mitigate the impact of rising memory costs. In the first quarter of 2025, the mass production of HKC's 50-inch FHD panel represented a significant attempt to introduce lower resolution specifications in mid-size panels. From a product positioning perspective, brands are using 50-inch FHD+60Hz panels paired with reduced configurations like 1GB+8GB low memory, with low price as the primary selling point, targeting the market for a household's second TV. Retail performance shows that 50-inch FHD TVs demonstrated clear price advantages in 2025, effectively creating a new market segment and subsequently boosting upstream shipments of 50-inch panels significantly.
According to Sigmaintell data, HKC shipped 6.93 million 50-inch panels in 2025, a substantial year-on-year increase of 112%, including 2.15 million 50-inch FHD panels. Shipments of its 50-inch FHD panels are forecast to reach 4 million units in 2026, a significant 86% year-on-year increase.
By the first quarter of 2026, cost control had become an urgent priority for set manufacturers, leading to the development of 55-inch FHD panels. Compared to current mainstream 55-inch UHD panels typically paired with 2GB+32GB memory in TVs, the 55-inch FHD panel not only has an inherent price advantage over 55-inch UHD panels but also allows for pairing with smaller memory capacities in the final product. This can partially offset the soaring memory costs for manufacturers. Using the 50-inch FHD as a reference, Sigmaintell estimates that for a 55-inch FHD+60Hz panel configured with 1GB+8GB memory, the memory cost is reduced by 38% compared to a 2GB+32GB configuration, based on Q1 average memory prices. Combined with the lower panel price due to the reduced specification, the relative price competitiveness of 55-inch FHD products for brand manufacturers is significantly enhanced.
As this demand shift gradually takes shape, panel makers have accelerated the development of 55-inch FHD panels. Three panel manufacturers—BOE, TCL CSOT, and Innolux—are expected to achieve mass production and shipment of 55-inch FHD panels between the second and third quarters of this year. However, a key question remains: can the 55-inch FHD panel scale up as rapidly as the 50-inch FHD did? Sigmaintell believes that initial volume growth may be easier than achieving large-scale adoption.
First, the potential degradation in picture quality associated with lower resolution needs validation from end consumers. For FHD specification, 50 inches is widely considered the upper size limit for acceptable picture quality with lower resolution; the granularity on a 55-inch FHD panel may become noticeably more pronounced, potentially impacting brand promotion and consumer experience. Second, the price difference between 55-inch FHD and 55-inch UHD panels is a critical factor influencing the aggressiveness of brands' procurement strategies. If the price gap between 55-inch FHD and UHD is similar to or greater than the gap seen between different resolutions in the 50-inch segment, the demand attraction for brands would be more significant, potentially pulling some demand from 50-inch UHD to 55-inch FHD. Third, the 55-inch FHD presents a double-edged sword in panel makers' business strategies. Unlike the 50-inch FHD, which benefits from HKC's favorable production conditions, the 55-inch FHD serves as a supplementary product for BOE, TCL CSOT, and Innolux, used for capacity adjustment and demand filling. Although the 55-inch FHD can stimulate the trend towards larger screen sizes, its significantly lower profitability is a key factor limiting large-scale promotion by panel manufacturers.
According to Sigmaintell forecast data, shipments of 55-inch FHD panels are expected to be less than 1 million units in 2026, and the growth of its penetration rate is projected to be relatively slow.
Widespread cost increases are driving a phase of polarized specifications in TV product development. From the perspective of TV industry technology trends, the penetration of specification downgrades into larger sizes runs counter to the long-term path of technological advancement. However, it represents a survival strategy in the current environment of broad-based cost inflation. Beyond the sharp rise in memory prices, costs for basic raw materials like metals and oil have also increased to varying degrees. Procurement cost pressure across the TV supply chain is likely to remain tight for an extended period, forcing brand manufacturers into a dilemma between "protecting profits" and "maintaining scale."
On one hand, brands are upgrading specifications for mid-to-high-end products, building a technological foundation for potential retail price increases to secure stable revenue and profits, but this risks a decline in sales volume. On the other hand, brands are being compelled to reduce specifications to lower costs and counter rising expenses, thereby stabilizing selling prices and taking on the task of maintaining sales volume.
Overall, Sigmaintell believes that the current widespread cost pressure will drive the TV product landscape towards a polarized characteristic. Coupled with the fact that screen size enlargement remains the long-term technological focus, the trend of lower resolution specifications is gaining some momentum to extend from 55-inch to 65-inch panels. However, picture quality performance will continue to limit the scale growth of large-size, low-resolution panels.
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