Flat-panel television sales to remain static next year
As sales of flat-panel television reaches 44 million units in 2015, a price war pushes the industry on the verge of falling profits.
Sales of flat-panel television will reach 44 million units in 2015, and a price war has gradually pushed the whole industry on the verge of falling profits, according to the China Electronics Chamber of Commerce.
According to a report published by CECC, the year-on-year sales growth rate for 2015 is expected to be around 5 percent.
"The slowdown in economic growth and sluggish market conditions, coupled with a surge in sales of Internet televisions from companies such as LeTV Holdings Co Ltd and Xiaomi Corp are set to keep industry prospects depressed in the long term," said Lu Renbo, CECC deputy secretary-general.
The report said that the market share of foreign TV brands－Samsung Electronics Co Ltd, Sharp Corp, Sony Corp and LG Electronics Inc-in the Chinese market will fall to about 15 percent of the total. Online sales of flat panel TVs, on the other hand, will continue to grow.
This year, online sales of home appliances accounted for 17 percent of the total appliance consumer market, with flat panel TVs being the highest, at about 10 million units.
"E-commerce channels in the third- and fourth-tier cities and rural markets are yet to be tapped fully," said Lu, adding there is "still more room for growth" in these areas.
The report said the 4K ultra high-definition TV market will continue to expand in 2016 and could well be the standard configuration for large-size flat panel TVs. Moreover, with the fall in prices of organic light emitting diode displays, demand for OLED models is set to rise next year. Sales of curved surface and ultra slim TVs are expected to surpass 6 million units next year.
According to the industry body, domestic and foreign TV manufacturers are expected to spend more efforts on product upgrade through advanced flat panel display technologies and cooperation with Internet firms.
Wang Yong, general manager of Sichuan Changhong Electric Co Ltd's Multimedia Industry Group, said: "Although television prices and net profit have been declining, many Internet firms are entering the field, which is testimony to the growth prospects. So it is important for companies to team up with Internet firms and make use of their abundant user resources."
Peng Jin, vice-president of Skyworth Group (China) marketing department, said the company will develop OLED displays and integrate more content such as games, video programs and entertainment into its smart TV products through its intelligent system next year.
TCL Corp is one step ahead. TCL and LeTV have struck a strategic pact to ride out the stiff competition in the television industry. The two sides will jointly develop high-quality innovative products and other vertically integrated services, and share their user and supply chain resources.