Taiwan market: LCD TV price war likely in 4Q10
Siu Han, Taipei; Willie Teng, DIGITIMES [Tuesday 26 October 2010]
digitimes.com
With Sony recently cutting the price for 32-inch entry level LCD TVs by NT$2,000 (NT$65) to NT$17,900, a price war is imminent in the Taiwan market. Industry sources indicated that although third-quarter sales increased 15% sequentially and 10% on year, inventory levels have exceeded five weeks, which should spur TV vendors to cut prices in October, especially for LED backlit models.
Most vendors saw September shipments decline on month, which is the main cause for the high inventory. Chimei, Sony, Teco each posted shipments of more than 10,000 units in September.
Despite a strengthening yen, Sony has announced a price slash for low-end products to gain market share. Sony has priced aggressively since 2009 in both China and Taiwan, which has motivated fellow vendors to follow suit, the sources indicated, adding that the price slash has affected South Korean players the most. Sony and LG Electronics' price difference has contracted from 30% in the past to about 10-15%.
The price cut has been especially fierce in the Taiwan market. For 32-inch entry-level products, prices offered by second-tier players have dropped from NT$13,900 at the end of 2009 to about NT$10,900.
Sales in 2010 should peak in December with Christmas holidays and Chinese New Year in January. December sales are expected to increase 20% on year and 8-10% sequentially, the sources said. Shipments in the Taiwan market are projected to reach 1.15-1.2 million units in 2010. |
