China: local LCD TV brands losing price advantage

   Date:2006/12/31

China-based LCD TV brands are facing mounting pressure from the aggressive price-cutting strategy from international brands such as Sony, LG Electronics (LGE) and Samsung Electronics.

The international brands were slashing LCD TV prices by more than 30% in China during the beginning of a national holiday at the start of October, with the reduced pricing level close to those for the local brands.

Some LCD TV models from the international brands are even less expensive than those from local brands. Sony, for example, is offering its 32-inch LCD TV (KLV-32U200A) at 6,800 Yuan (US$860) while LGE is pricing its 32LC2R, a 32-inch model, at 6,900 Yuan. In comparison, the 32-inch LCD TVs from China-based Skyworth and Changhong Electric are priced at 8,699 Yuan and 7,999 Yuan, respectively.

These international brands also cut prices for their 40- and 42-inch LCD TVs during the holiday.

The international brands are selling LCD TVs with competitive prices in the China market since these models are using TFT LCD panels from Taiwan-based makers, explained Taiwan-based TV makers. Sony, Samsung and LGE are adopting 32-inch panels from Taiwan-based makers such as AU Optronics (AUO) and Chi Mei Optoelectronics (CMO) while LGE and Samsung are also souring 26- and 37-inch TV panels from the suppliers, said the TV makers.

China-based Hisense, Xiamen Overseas Chinese Electronics (Xoceco), Konka , Skyworth, TCL and Changhong were the top six LCD TV brands in terms of shipments in China in the first quarter of 2006.

China market: Top ten LCD TV brands, 1Q06

Ranking

Brand

Market share

1

Hisense

10.9%

2

Xoceco

10.2%

3

Konka

9.2%

4

Skyworth

9.1%

5

TCL

9.1%

6

Changhong

8.5%

7

Samsung

6.1%

8

Haier

5.0%

9

Sharp

4.2%

10

Philips

4.0%

Source:佚名

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