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    Greater China
     Jun 10, 2005
Roaring gains for flat-panel TVs in China

BEIJING - The Chinese TV market is in the early stages of a switch to flat-panel display models, with many of the country's increasingly affluent TV buyers leapfrogging the older CRT-based (cathode ray tubes) units in favor of liquid crystal display (LCD) or plasma display panel (PDP)-based flat panel TVs, both of which have seen spectacular increases in sales in recent months.

In the first four months of 2005, China's LCD TV market generated a total sales volume of 215,000 sets, worth 2.05 billion yuan (US$247.6 million), rocketing by 378% and 310% year-on-year, respectively. The lion's share of China's LCD TV market was taken up by domestic brands. In February through April, all top seven retailers were domestic enterprises, making up 66% of total market share in February and 70% in April. Three domestic TV giants, Skyworth, Hisense and XOCECO, ranked the top three, with total sales accounting for more than 37% of the total.

In terms of the production mix, large-screen LCD TVs became mainstream in January through April, with 32.6% of the market taken up by 32-inch or larger TVs. Out of the large-screen market, the share of 32-inch TVs registered the fastest growth, at 18% in January and 23% in April. Simultaneously, the market share of 30-inch units shrank. The market share of 20-inch LCD TVs dropped slightly, reaching 11% in April. Along with rapid growth in sales, the prices of LCD TVs dropped sharply. The price of 40-inch TVs dropped by 49.3%; that of 42-inch units by 26%; 37-inch TVs by 16.7%; 32-inch TVs, by 9.2% and 30-inch TVs, by 15.2%.
PDP unit sales up
In the first four months of 2005, China's plasma display panel TV market sold 128,000 sets, worth 2.73 billion yuan, soaring by 236% and 110% year-on-year, respectively. This far exceeded previous predictions of only 170% growth. Domestic brands raised their total market share by 2.7 percentage points to reach 49.1%, while that of Japanese brands dropped by 5.3 percentage points.

In terms of production mix, the 42-inch TVs took about 94% of the total market share while 50-inch TVs took 3%. The market share of 42-inch high-definition PDP TVs accounted for 11% of the total, the same as at the end of 2004. In terms of average price, that of 42-inch PDP TVs dropped by 12.7%, averaging 18,455 yuan in April; that of 50-inch TVs down 17.9% to reach 44,946 yuan in April.

The market share of PDP TVs with an average price lower than 15,000 yuan accounted for only 13% in January, but it reached 28.2% in April. Plasma units in this price range became the mainstream choice and were mostly domestic brands. The market proportion of PDP TVs with prices ranging from 15,000 to 20,000 yuan reached 43% in April, whereas overseas brands, including Panasonic, Samsung, Toshiba and LG took the lion's share of sales.

(Asia Pulse/XIC)


Bright prospects for consumer electronics
(May 26, '05)

Color TV sales rise in 2004
(Mar 25, '05)

Corning eyes 4 cities for LCD glass plant
(Jun 8, '05)

LG, Samsung seize China's digital TV market
(Nov 21, '03)


 
 



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