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    Greater China
     Mar 25, 2005
Color TV sales rise in 2004

BEIJING - Color TV sales in 2004 rose 11% year on year to 72.68 million, accounting for 55% of the world's total, with a sales/production ratio hitting 99.2%. Meanwhile, China exported 27.7248 million color TVs in 2004, 21.8% more than in 2003. High-end products accounted for more than 12% of exports, with a value exceeding 25% of the total.

There were 68 domestic color TV manufacturers at the end of 2004, with a combined annual production capacity of 86.6 million units, and an actual output of 73.288 million, 12% more than in 2003. The annual output growth averaged 17.5% in 2002-2004, annual sales growth averaged 15.8%, and export growth averaged 28.1%.

The output of 13 color TV makers exceeded one million units, and their combined output accounted for 93.5% of the national total. The annual output of TCL was close to 20 million, while that of the top four enterprises exceeded eight million each.

Half of China's top ten electronics enterprises were in the color TV industry. Fierce competition forced a number of TV manufacturers out of the market but also attracted a number of others. The product mix has shifted towards high-end models, such as plasma display panels (PDP), liquid crystal displays (LCD), digital light processing (DLP), high-definition television (HDTV), and flat-panel TVs.

The proportion of production destined for export rose to 38.1% from 25.3% in 2000. Joint stock companies occupied a dominant position.

Most of the big names in the sector now have R&D centers, with more funds being injected into R&D. The investment in R&D exceeded 3% of revenues. Numerous new technologies and devices were developed, in keeping with trends in the global industry.

Having fully developed the production chain for cathode-ray tube (CRT) models, the sector is now focused on the development of a flat-panel TV sector. Shanghai-based SVA Group and Beijing Oriental Electronics (BOE) have launched their fifth generation of TFT-LCD production lines, while overseas enterprises moved or constructed their liquid-crystal module (LCM) production lines in the Yangtze River Delta and Shenzhen. After the LCM production lines were completed, production lines for producing matching parts for LCM have gradually shifted into China.

Domestic color TVs now basically satisfy consumer demand at all levels. The TV penetration rate in cities has reached 133% and that in the rural areas, 70.5%.

Despite its rapid development, China's color TV industry is still riddled with problems. The industry still lacks core technology, and levels of technology and quality remain low. Fierce competition forced down prices. Though this stimulated consumption, it also weakened the profitability of the industry. Net profit on sales was only 2.05% in 2004.

Exports met with setbacks due to anti-dumping charges. Disorderly export markets, vicious price competition, and new protectionist measures all obstructed the export of Chinese color TVs. In addition, intellectual property rights remain a problem. A number of foreign companies have begun to collect patent fees and this has cut into the price advantage of Chinese products.

(Asia Pulse/XIC)

 

 
 

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