China market: Fierce price war in TV market expected in October
Rebecca Kuo, Tainan; Yvonne Yu, DIGITIMES [Thursday 9 September 2010]
digitimes.com
Fierce price competition is expected among the TV vendors in China during the National Day holidays in October as they seek to clear inventories piled up during the first half of the year when demand was worse than expected, according to market sources.
LCD TV sale shipments in China in the first half of 2010 reached 2.39 million units, accounting for only 36% of the vendors' overall sales goal for the year, according to data from research firm All View Consulting (AVC).
Among the first-tier vendors in China, their LCD TV shipments in the first half only reached 37% of their overall goal for the whole year, AVC added. The first-tier vendors' target for the year stands at a total of 6.5 million LCD TVs in China, but shipped only 2.43 million units in the first half, AVC data showed.
Overall LCD TV sales during the National Day holidays in China in 2010 is expected to grow over 30% on year, the sources added.
With the Moon Festival holiday coming on September 22, vendors plan to start price-reduction promotion as early as mid-September, the sources said.
Prices of 3D TVs will remain at high levels as vendors test the market, the sources said. But the vendors are expected to provide significant cuts in prices of LED-backlit TVs during the holidays to boost overall shipments. Clearing inventories of CCFL-backlit models will be another major goal of the vendors, the sources added.
LCD panel makers indicated that most of the panel inventories have been digested amid recent capacity adjustments. Inventory levels in the China market remain at 5-6 weeks, but they are expected to be cleared during the holidays. Panel makers now need to adjusts their capacity proportions for LED-backlit and CCFL-backlit TV panels amid the surging demand for LED-backlit models, the panel makers added. |
