Chinese display makers are seeking higher LCD panel prices, adding cost pressure for Samsung Electronics and LG Electronics as they build inventory ahead of the Black Friday and Christmas sales season. BOE, China’s largest panel producer, notified major customers including Samsung and LG that display prices would be adjusted from the fourth quarter, citing raw-material fluctuations and higher supply-chain costs. TCL China Star and HKC had already announced increases for some panels shipped from September. Chinese manufacturers control 70% to 85% of the large-size LCD TV panel market, while their share of panels measuring 90 inches or more is virtually complete. Samsung and LG exited large-size LCD production and now source all of their LCD panels from Chinese suppliers, limiting their negotiating leverage. Panels account for 40% to 50% of TV manufacturing costs, and both companies are expected to substantially increase purchases in the second half. The price moves threaten TV profitability because weak demand and aggressive competition from TCL and Hisense make it difficult to pass higher costs on to consumers. Both companies say they will emphasize premium products and operational efficiency, while the effect on actual transaction prices remains uncertain.