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Flat-panel TV Market Expects Price Reduction before World Cup(China IT Watch Via Thomson Dialog NewsEdge)BEIJING, Mar 17, 2006 (SinoCast China IT Watch via COMTEX) --China's flat-panel TV market is heating up after about one month's silence. Most flat-panel TV manufacturers start to promote their sales in the midseason brought along by the coming World Cup. As the large-scale price reduction of LCD panels in the first quarter of this year is about to affect the price of the complete TV sets in the second quarter, and the TV manufacturers hope to boost their sales during the hot season of World Cup, the flat-panel TV market is expected to cut prices in the second quarter. The down-stream TV manufacturers are inclined to cut prices to promote the sales of LCD TVs from the third quarter of this year in the global market, revealed some industry expert. But as the World Cup will open this June and most manufacturers have confidence in its drive in the sales of flat-panel TV market, the down-stream manufacturers may bring the promotion activities from the early third quarter forward to the second quarter. Besides the World Cup, the US government has decided that the TV sets of more than 25 inches that sold over the US counters should be installed with digital TV high frequency head from this March 1. Therefore, the US market has a strong demand for the LCD TV products installed with digital TV high frequency head from this March. For the foresaid reasons, the LCD TV giants rush to expand their production capacity and expect to improve their sales in the peak period and get ahead of their competors. In order to solve the insufficiency of LCD panels, Sharp decided recently to purchase LCD TV panels from Quanta Display Inc. of Taiwan to seize the commercial opportunities before the World Cup and keep its leading position in global LCD TV industry. Sony also required AUO, Chi Mei, and Quanta Display to provide 32-inch LCD TV panels for authentication work before massive purchase. Besides, it was said that Samsung and LG also enhanced their purchase of the LCD TV panels of Taiwan. Price has been playing a more and more important role in the competition among the LCD TV brands since Sony's Bravia LCD TV replaced Sharp LCD TV as the leading TV brand with low-price strategy in the fourth quarter of last year. Price reduction will be the most important and effective means in the competition in the second quarter. The price war in the second quarter will not be too fierce. It is more of a delayed result of the price reduction of LCD panels in the first quarter. The apparent price reduction of LCD TV panels in the first quarter will be reflected on the prices of complete TV sets in the second quarter of this year. Together with the need of manufacturers for sales promotion, it will result in price reduction of LCD TVs in the second quarter, pointed some industry expert. The foreign TV brands have held the dominant power in the price war of domestic flat-panel TV market since the foreign brands like Sony first cut its prices in the Chinese market at the end of last year. The local flat-panel TV brands have reduced their prices in advance, so even if the up stream made a big price cut, there is little space left for local TV brands to cut prices. (USD 1 = CNY 8.0374) From 21st Century Economic Herald, Page 1, Thursday, March 16, 2006 [email protected] |