Consumer Reports Flat Screen Tv

2007 China Flat Panel Tv Industry Outlook (on)

2006 year is China’s “Eleventh Five-Year Plan” open question, and also of the development of flat panel TV industry a year of great significance. Throughout 2006, the domestic flat-panel TV market, the overall trend is basically consistent with the development of the market in 2005 we expect sales and demand has improved tremendously, the formation of a certain market size, flat-panel TV industry for the future development of building a better platform. With the flat-panel TV market size to big consumer, industrial upstream and downstream are further adjustments and integration, and seek in the competitive market to get more opportunities for development.

1. China’s flat panel TV Industry Status

2006 flat-panel TV consumer market in China continued rapid growth following the 2005 market sales of nearly 200 million units, the 2006 flat-panel TV market started from the first quarter increased by leaps and bounds in the May 1 Golden Week, and World Cup continuous stimulation and other factors, in the first half sales of 200 million units. The market by the State Council Development Research Center, China Electronic Chamber of Commerce joined together to form the Chinese appliance market research discussion group joint preparation of “2006 China’s Demand for flat-panel TVs urban consumers and 07 flat panel TV Market Forecast Report” on the annual statistics of the data , 06 flat-panel TV market, strong growth in consumption, the overall growth in the direction of clear, flat panel TV demand of urban consumers throughout the year to reach 480 million units, accounting for annual sales of color TV sets throughout the city 27% of the total market demand, sales of share is Up to 63%. Flat-panel TV industry in the context of overall growth, while flat-panel TV market show the following characteristics:

1. Gradually replaced by flat-panel TVs CRT, LCD market growth rate higher than the plasma

From the beginning of 2006, squeezed by the growth of flat-panel TVs, CRT TVs gradually give up market share, CRT output frequency of negative growth. Meanwhile, according to customs data, the export structure also changed color TV, flat panel television has become a major television exports of pulling power, CRT exports growth slowed down. In addition, plasma flat-panel TV market growth lower than expected, plasma production to a halt. LCD, plasma, CRT TV products such as long-term coexistence of the market, changes in market demand will further adjust the production scale and output.

2. Industry profits declined, the need for new growth

To rapid expansion of capacity in the market at the same time to seize the market, companies continued to cut prices and increased marketing costs and lower profit margins throughout the industry, need to improve the quality of growth. According to statistics, during the first half of 2006 profits of home audio-visual equipment manufacturing industry decreased by 10%, the industry overall profit was higher than that of some traditional home appliance industry, but much lower than the information industry average. Basic surface in the digital standard system, the flat panel TV industry will continue to explore new high-return growth.

3. Promote competition in the market to speed up new product launch frequency

New year release the industry high frequency, some domestic enterprises annual series of new products released 4 to 5 times, new models or even 100 or more. This is market competition lead to shortened product life cycles, on the other hand should also be aware that too frequent new product launches have led to the decline in new product innovation, long-term perspective is not conducive to the healthy development of enterprises.

4. Upstream and downstream industries closer together

Upper panel provider of flat-panel TV manufacturers and downstream channels of commercial position in the industry to gradually form the chain, vertical cooperation has been extended. 2006, whether LCD or plasma, the domestic enterprises to explore the upper reaches of progress has been made. In fact, with the development of the market, the upstream resources LCD screen market has seen a trend in excess of demand, upstream and downstream companies are actively exploring ways of cooperation, including Xiamen Overseas Chinese and Chunghwa Picture Tubes of strategic cooperation is a good example.

In the upstream industry chain, the domestic panel is still in a passive state of enterprise development. In the absence of overall national planning cases, compared to foreign enterprises and high-generation production line continuously upgrade the cutting technology, BOE, SVA and other domestic enterprises in line behind the slow pace of updates, do not have independent intellectual property rights, the German market, small-size panels space narrow loss.

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