May TV Import Growth Stymied By Tough Comparisons With 2020

Unit growth in TV imports to the U.S. showed signs of regressing in May, due mostly to tough comparisons with May 2020 -- the second full month of COVID-19 lockdowns, in which consumer demand skyrocketed to historic levels. There was little abatement in the inflationary trends that sent TV pricing soaring due to unprecedented price hikes in LCD panels (see 2106140024).

U.S. importers sourced 4.06 million TVs in May from all countries in all sizes, according to just-released Census data accessed through the International Trade Commission’s DataWeb tool. May’s volume was up 15.7% sequentially from April but down 3.8% from the 4.22 million sets shipped here in May 2020. The average May TV import was worth $306.09 in customs value, 0.7% more than in April but 11.2% costlier than the $275.19 average in May 2020.

Mexico generated 55.7% of all TV imports to the U.S. in May, down somewhat from its 60.4% share in April and 13.5 points higher than its May 2020 contribution, said DataWeb. Mexico shipped 2.26 million TVs to the U.S. in May, representing 6.6% growth sequentially from April and up 27% year over year. The average Mexican import -- worth $406.72 -- was far costlier than its Chinese or Vietnamese counterparts. The average Mexican TV increased 3.3% in value from April and was 26.3% more expensive than in May 2020.

China generated 20.8% of all TV imports to the U.S. in May, nearly half its May 2020 share, said DataWeb. Unit volume plummeted 50.4% year over year to 844,000 sets, though the average Chinese TV, worth $184.19, increased 33.5% in value from a year earlier, higher than the inflation rate of any other country of origin. Vietnam had the lowest year-over-year gain in average value. The average Vietnamese set was worth $150.37 in May, up only 5.2% from May 2020. Vietnam generated 11.9% of all TV imports to the U.S. in May, a 1.5-point increase from a year earlier. Unit volume from Vietnam increased 64.1% sequentially from April and rose 10.8% from May 2020.

The stark decrease in Chinese unit volume was due to the “unusually high number” of sets China shipped to the U.S. in May 2020, said Bob O’Brien, co-founder of Display Supply Chain Consultants. “Q2 2020 was unusual because when the pandemic hit, the supply chain panicked and stopped buying, then realized too late that TV sales were hot, so they needed to rush orders,” O’Brien told us. Making finished TVs in China and sending them to the U.S. was faster than making the panels in China and sending them to Mexico or Vietnam for final assembly of sets for U.S. export, he said: “So TV imports from China surged in Q2 2020.”

TVs with screen sizes exceeding 45 inches -- imported here under the Harmonized Tariff Schedule’s 8528.72.64.60 subheading -- remained the largest classification of import unit volume in May, but shipments to the U.S. in that class from all countries declined 1.4% to 2.16 million, said DataWeb. Sets with 30-to-35-inch screens -- shipped here as HTS 8528.72.64.30 goods -- were the weakest unit import category, declining 24.3% to 646,000. Imports of sets in the 35- to 45-inch class -- HTS 8528.72.64.40 goods -- increased 6.7% year over year to 1.11 million. The average HTS 8528.72.64.60 set rose 39.9% in value from a year earlier to $437.27. HTS 8528.72.64.40 TVs increased 33.2% in average value to $191.12. For the smallest sets imported under HTS 8528.72.64.30, their average value was up 27.8% from a year earlier to $114.09.