Average Q2 TV Import Was 44.8% Costlier Than in 2020; Units Fell 5.6%

TV imports to the U.S. approached 11 million sets in Q2, about 650,000 fewer than in the 2020 quarter, according to Census Bureau data retrieved Saturday through the International Trade Commission’s DataWeb portal. Higher panel costs and other inflationary trends rendered the average Q2 TV import nearly $99 more expensive than its 2020 counterpart. TVs shipped here in January-June averaged customs value roughly 25% higher than in 2020's first six months.

U.S. importers sourced 10.88 million TVs from all countries in Q2, up 13% sequentially from Q1 but down 5.6% from Q2 in 2020, said DataWeb. The $318.05 in customs value of the average set was $98.69 costlier than the average TV import in Q2 a year earlier -- a 44.8% differential. TV imports to the U.S. in 2021's first six months topped 20.51 million sets, up 5.4% from the 19.46 million units shipped here in January-June a year earlier. The average first-half TV import jumped 25.2% in value to $299.11 from $239 in 2020.

Actual TV retail sell-through statistics can lag those of import figures by weeks or months, but prognosticators are warning that higher pricing for finished sets will impede consumer demand in 2021's third and fourth quarters. Modest unit declines in TV sell-through for the year are possible, they say, even as higher average selling prices spawn mid-single-digit revenue growth for the year. Higher ASPs “inevitably lead to lower demand, resulting in unit sales declines in categories such as TVs, networking devices, and printers in the back half of the year,” said Stephen Baker, NPD vice president-industry adviser (see 2108110009).

Pricing for the "main input" of a TV, its LCD TV panel, increased on average about 100% in 2021's second quarter from a year earlier, emailed Bob O'Brien, Display Supply Chain Consultants co-founder. "That is the main driver of higher TV prices," he said. "We believe the LCD TV panel prices peaked in June/July and will decline for the rest of the year, but will remain at levels far higher than 2020."

Mexico, the largest source of TV imports to the U.S., shipped 6.67 million finished sets here in Q2, up 31.3% year over year and 26.1% growth sequentially from Q1, said DataWeb. Mexican TV imports in six months jumped 14.8% from a year earlier to 11.96 million sets. Chinese shipments plunged significantly in the quarter and first half due to tough comparisons with 2020's second-quarter surge in TV imports from China (see 2106140024).

U.S. importers sourced only 1.9 million TVs from China in Q2, 57.4% fewer than in 2020's Q2 and down 28.6% sequentially from Q1, said DataWeb. January-June shipments from China declined 23.1% to 4.56 million sets. Q2 Vietnamese TV imports to the U.S. declined 12.9% year over year to 1.08 million sets but were up 16.9% sequentially from Q1. Shipments from Vietnam increased 25.6% in January-June to 2.01 million TVs.

The Q2 trend toward higher average customs values was most pronounced in TV imports with mid-sized screens, compared with other classes of sets, said DataWeb. TVs under 35 inches had the biggest unit declines from a year earlier, when COVID-19 lockdowns sent demand for that class of product skyrocketing, resulting in tough year-over-year comparisons.

TV unit imports from all countries of Harmonized Tariff Schedule 8528.72.64.60 goods with screen sizes exceeding 45 inches reached 6.11 million sets in the quarter, up 15.5% from Q1 but a 3% dip from the 2020 quarter, said DataWeb. First-half shipments in that class of screens increased 5.8% from a year earlier to 11.41 million sets.

The average HTS 8528.72.64.60 big-screen TV import commanded $438.09 in customs value for the quarter, up $124.69 from the $313.60 average in Q2 2020, a 39.7% year-over-year change, said DataWeb. The average $414.23 in 2021's first six months was 23.3% higher than in January-June a year earlier.

U.S. importers sourced 2.71 million TVs from all countries in Q2 in the HTS 8528.72.64.40 class of sets with screen sizes between 35 and 45 inches, up 12% sequentially from Q1 and 3.8% more than in the 2020 quarter, said DataWeb. HTS 8528.72.64.40 unit imports grew 16.9% in January-June to 5.13 million sets. The average product in that class grew 42.4% in the quarter to $202.17, and 29.7% higher for the first six months to $191.65. HTS 8528.72.64.40 goods had the highest rates of year-to-year inflation in the quarter and January-June than any other class of TV imports.

Q2 shipments of HTS 8528.72.64.30 TV imports with screen sizes between 30 and 35 inches, rose 11.8% sequentially from Q1, but declined 26.7% from a year earlier to 1.7 million sets, said DataWeb. January-June imports of 3.22 million units were down 11.6% from 2020. The average customs value of HTS 8528.72.64.30 goods soared 34.1% year over year to $117.40 in the quarter, and was up 24% in January-June to $112.40.