The week-long MEM TV markets have stalled as of late, leaving investors perplexed. The MEM TV market has been uncertain for weeks, with prices fluctuating and no long-term growth in sight. Here’s why the market has been so tenuous of late and what investors should look for if they’re considering putting money into the sector.
The MEM TV market has been on a roller coaster ride over the past few weeks, as a confluence of factors have come together to impede growth. To start off, the sector was already in a weakened position. With the pandemic stretching on, demand for televisions has dropped, resulting in a glut of inventory and anemic sales. Additionally, the streaming wars have put pressure on the MEM TV makers – many of whom have yet to establish a presence in the increasingly crowded streaming space.
Complicating matters further, the market has been weighed down by a series of supply-side issues. Production costs have been rising steadily for MEM TV makers, as a shortage of chips, shortages of workers and other production issues present a challenge. Furthermore, the ongoing U.S.-China trade war has complicated the picture, causing many MEM TV makers to shift production to other countries in an attempt to keep costs more manageable.
All of these factors have caused the MEM TV market to become increasingly bearish, with many investors wondering if there is any hope of a positive turnaround. Fortunately, there is light at the end of the tunnel. The continued rollout of 5G networks around the world could open the door to new opportunities for MEM TV makers, as consumers upgrade to new televisions and streaming services. Additionally, the potential for government incentives and subsidies to help jumpstart the sector could provide a meaningful boost.
Ultimately, the MEM TV market remains a volatile one, and investors should keep a close eye on the developments on the supply and demand side. That said, there are glimmers of hope and the potential for a turnaround as long as the key factors remain supportive.