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    Greater China
     Jul 20, 2005
China to see rivalry between LCD TV and PDP TV

BEIJING - Recent years have seen an upsurge of demand for flat panel TV sets in China. Experts anticipate that liquid crystal display (LCD) TVs and plasma display panel (PDP) TVs - the two main types of flat panel TVs - will divide up the domestic flat panel TV market with their respective technical and cost features.

The year 2005 will see a market demand for 1.85 million sets of FPD TV in China, 185% higher than 2004. It is also expected that in the third quarter consumers purchasing an LCD TV will account for 69.5%, compared to 30.5% favoring PDP TV, partly because consumers are more familiar with LCD TVs, according to studies made by the Research Institute for the Market Economy of the Development Research Center of the State Council and the China Electronic Chamber of Commerce.

According to experts, LCD TVs and PDP TVs have respective advantages over each other. For overall visual performance, PDP shows a better outcome with 6 excellent marks out of 12 performance indices. Indices of luminance contrast, brightness and color are better than those for LCD panels, and the minimum response time of PDPs is 1 millisecond, compared to 10 milliseconds for LCD panels.

In terms of service life, LCD TVs manifest longer hours (60000 hours) than PDP TV (30000 hours). But new PDP TVs being introduced in 2005 are also expected to be able to reach a service life of 60000 hrs. LCD TVs have a power consumption that is 30% less than that of PDP TV, although both consume above 200W.

An analysis of component costs for LCD TVs and PDP TVs shows that the display panel occupies above 65% of material costs, which determine the price of the set.

The present cost of an over-40-inch PDP is 50% -55% of the cost of an equivalent LCD, although this advantage is expected to shrink, with PDPs estimated to cost 70% -75% of the cost of an equivalent LCD in 2008.

Manufacturers see a promising future for flat panel TV markets and are expanding their production in 2005. In 2005, PDP manufacturers will have five new factories put into production, expanding their production capacity by 50%, or 72 million units in new annual output. Meanwhile, the average price of a PDP TV is expected to drop 20% along with improving technology and new materials.

LCD will also expand production this year, by establishing five sixth-generation factories (mainly focusing on production of 32-37 inch display panels) and one 7-generation factory, and it is anticipated that in 2007 and 2008 more 7.5-generation and 8-generation factories will enter the race.

It is expected that with one more year of adaptation to the market after 2008, a 40-inch LCD TV will have the same cost as an equivalent PDP TV. Therefore, the year 2009 will be a key year in the race to determine whether LCD or PDP will seize the flat panel TV market.

Data from a recent study show that LCD and PDP sales grew rapidly in recent years, with PDP dominating the over-40-inch display panel market with a market share rising from 32% in 2004 to 49% in 2008, due to descending price and improving technology. The LCD technology, which offers few over-40-inch products, will dominate the 20-37 inch display panel market, with a market share rising to 21% by 2008, along with production from 7-generation and above 7-generation factories.

(Asia Pulse/XIC)

 

 
 



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