Prices drop on domestic plasma TV
12/4/2004 13:07
The plasma color TVs of more than ten domestic brands have seen price
reductions of 10-35 percent over the past month, with 46-inch plasma TVs priced
below 29,000 yuan (US$3,500), the price for only a 40-inch plasma TV last year,
the Shanghai Morning Post reported today.
Plasma TVs, with their good picture
quality, are favored by high-end consumers in Shanghai, and the number of plasma
TV brands has increased from less than ten last year to currently more than 20,
fueling the competition, said an industry analyst.
Shanghai SVA 42-inch
Plasma TV is sold at 22,800 yuan, with other domestic 42-inch models priced at
around 25,000 yuan.
In order to keep their market shares, foreign brands
have begun to follow suit. Samsung cut its 42-inch plasma TV prices from 35,000
yuan to 29,000 yuan; LG slashed the price of 42-inch plasma models to below
30,000 yuan; Hitachi and Panasonic cut the prices of the same models by 2,000
yuan.
Price reductions have boosted sales. "We only sold just over ten
plasma TVs every month last year, but the average monthly sales hit 150 this
year, with those of SVA, Samsung and LG accounting for 60 percent of the total
sales," said a spokesman with the household appliance city of the Shanghai
Business Center.
Plasma TV sales produce hefty profits, so they have still
more room for price reductions, said an industry observer.
The fierce
competition and the transfer of the production bases of foreign TV manufacturers
to the Chinese mainland are expected to further reduce the prices on 42-inch
plasma models to below 20,000 yuan by the end of this year, the observer pointed
out.
Only 15,000 plasma TVs were sold in China last year, while this year,
sales are expected to hit 15,000 in Shanghai, according to the Shanghai
Household Electrical Appliance Association.
Wendy Zhang/ Shanghai Daily news
|
