Laptops Down 14.1%

August TV Imports Trended Costlier, Especially in Smaller Sizes

October 13, 2021 by Paul Gluckman|Top News

Tough comparisons with August 2020, the fifth full month of COVID-19 lockdowns and stay-at-home orders, were evident in the double-digit year-over-year declines in August imports of TVs, smartphones and laptops and tablets, according to Census Bureau data accessed Monday through the International Trade Commission’s DataWeb portal.

Month-over-month TV imports increased significantly from July in all screen sizes, especially in sets under 35 inches, likely a sign of stepped-up procurement activity as retailers try to build holiday inventory amid well-publicized port and supply chain bottlenecks. But that wasn't the trend in August smartphone or laptop and tablet imports, declines of which from July were well into the double digits.

U.S. importers sourced 4.5 million TVs in all sizes from all countries in August, said DataWeb. Unit volume in August was up 19.6% from July, down 21% from August 2020, when just under 5.7 million sets entered the country. “I do think retailers have been bringing in inventory early,” emailed Display Supply Chain Consultants President Bob O’Brien. “It makes sense that the pull-forward is most pronounced in the small sizes, because those are more likely to be imports from Asia, as opposed to the larger sizes which usually are assembled in Mexico.”

August TV imports in screen sizes exceeding 45 inches reached 2.66 million sets, 12.5% fewer than in August 2020 and up 10.4% from July, said DataWeb. The average large-screen import had $463 in customs value, up marginally from the $448.75 average in July but more than a third higher than the $343.94 average in August 2020.

It’s “not a big surprise” that average TV costs went up in all screen sizes, but especially the smaller screens imported from China and Vietnam, “because of the time lag between panel prices and set prices,” said O’Brien. “Panel prices peaked in June/July, but they were still going up in May.” August TV imports “represent” panels sold in May and June for assembly into finished sets later in the summer, he said. “I suspect that August may represent the peak prices or there will be only a very small increase in September before they start coming down. Panel prices have been falling rapidly in August & September, down 25% in those two months, and that should start to show by the time we hit Thanksgiving.”

Slightly more than a million TVs with screen sizes 35 to 45 inches entered the country in August, said DataWeb, increasing 19.1% from July, but down 4.8% from August 2020, the smallest year-over-year decline in any screen classification. The average set was $226.41, up 2.8% month over month, but 52.3% higher than a year earlier.

Odd trends prevailed in August imports of TVs between 30 and 35 inches, DataWeb shows. U.S. importers sourced just shy of 694,000 sets in that screen classification. That volume was 65.9% more than the 418,000+ sets shipped here in July, but down 44.7% from 1.25 million units entering the country in August 2020. Imports of 30- to 35-inch sets increased more significantly month over month than any other screen size, but their year-over-year decline was also the most profound. The average set, at $143.19, was 71.5% costlier than in August 2020 and had the highest year-over-year rate of increase.

August imports of sets under 30 inches that make up about 3% of the total unit mix and typically are 720p private-label products with low frame rates had their own peculiarities. About 139,000 of those goods entered the country in August, up 54.6% from July, down 37.2% from a year earlier, said DataWeb. The average set, at $99.29, was down 11.1% from July, up 41.3% from August 2020. It was the only screen classification with a month-over-month decrease in average value.

U.S. importers sourced about 13.21 million smartphones from all countries in August, 14.9% fewer than in July and down 11.7% year over year, said DataWeb. The average handset declined 11.9% month to month in value to $251.52, 5.5% costlier than in August 2020. Year-to-date smartphone imports were up 7.9% to 117,962,041 through August compared with January-August a year earlier. They were on pace to finish 2021 just shy of 196 million units, from 2020's 181.61 million. IDC’s latest forecast is for U.S. smartphone imports to increase 7.2% this year, emailed a spokesperson Monday.

DataWeb showed double-digit declines in August laptop and tablet imports, both month over month and year over year. U.S. importers sourced 9.93 million devices from all countries in August, said DataWeb. That was 22% fewer than in July and down 14.1% from August 2020. The average device, at $442.30 in August, was 2.9% more expensive than in July and 9.5% costlier than a year earlier. Analysts suggest consumer and educational spending began to shift away from PCs in the third quarter, and that semiconductor shortages are particularly constraining Chromebook shipments (see 2110120058). HP is struggling to ship as many products as it can “while navigating a complex operational environment,” said its CEO on a late August earnings call (see 2108270003).