LCD TV prices appear avalanche manufacturers are at a loss

The world's largest LCD panel business Samsung Corp was shocked.

Last year, Samsung's experts predict 32 inch LCD TV will become the mainstream market. But the market has changed beyond their imagination. They quickly adjusted the forecast, began to be more than 40 inches large screen LCD TV as the mainstream products in the future.

"Construction of 40 inch LCD TV panels, the need for at least 7 or more production lines. Such a large investment in production lines, large profits, the basic monopoly in the hands of Japan and South korea." Chen Lin, a senior analyst at CCID Consulting, told the financial times. He believes that the core of the panel and the heteronomy, the market price is lower, the current domestic appliance manufacturers profit worrying.

Manufacturers are losing money?

Due to the rapid increase in the global LCD TV production line and LCD panel, as well as the addition of more brands, in 2004 the price of LCD TVs from high prices to high prices significantly accelerate the pace of. CCID Consulting's research results show that in 2004 the average price of global LCD TV fell 36.1% compared with last year, the average price of LCD TV in 2004 was only $1099.7.

Behind the price avalanche, the situation is becoming increasingly difficult domestic flat-panel TV manufacturers. "The price of the upstream panel is slowing down, but the price of liquid crystal TV is on the rise. Profit margins for manufacturers is not much." An industry internal source.

Chen Lin analyzed the cost structure of a flat panel TV reporter. "Flat panel TV is mainly composed of panel, chip and circuit. The latter are mostly independent development, accounting for less cost. The panel will account for nearly 70% of the total cost of a flat screen tv". He expressed concern about the high cost.

Huaxia Securities senior analyst Chen Yuanwang expressed his approval. In his view, from the current point of view, the current flat-panel TV manufacturers will not exceed 20% of gross profit, channel profit is about 10%, the greater the profits are being made to the upper panel business.

From the enterprise's voice is more blue. More than 37 inches large size flat-panel TVs do not make money, and some even sell at a loss. Only a small screen flat-panel TVs have some profit." SKYWORTH digital Holdings Co., Ltd. Sun Weizhong voice rather helpless. He believes that with the second half of the competition intensified, manufacturers will be more difficult days.

At present, the domestic 30 inch LCD TV from last year's 15 thousand yuan fell to 7000 yuan this year, the domestic 32 inch LCD price needs to 8000 yuan to 10000 yuan, while a domestic 42 inch LCD TV prices even down to 20 thousand yuan price.

At present, the price of 42 inch LCD TV is generally around $2900, the market is expected in the next three years, the price will be around $1600, down at least 50%. At that time 30 inch LCD TV will be reduced to less than 3000 yuan. Domestic manufacturers precarious position

Chen Lin said that the current domestic flat-panel TVs are still in the warm-up phase, 2008 is the real blowout period. The Olympic Games and the popularization of digital TV will be the two major factors. According to CCID Consulting data show that in 2004, the domestic LCD TV market sales of 1 billion 790 million yuan, total sales reached 229 thousand units, respectively, an increase of over the previous year and 218.1%. 2008 market capacity is expected to reach 8 million ~1000 units.

Just three years, the market growth will be more than 40 times. This huge business opportunities to attract the attention of many enterprises. Currently, in addition to the first tier companies Hisense and SKYWORTH, Haier, Changhong, TCL are also force the market.

Although Hisense and SKYWORTH in the front, but the future is still far from the competition." Chen Lin commented on this. He believes that all home appliance manufacturers have the opportunity to reshuffle.

However, Chen Lin is more inclined to Samsung, SHARP and other Japanese companies, as well as BenQ, AOC and other companies have a panel production line IT. BenQ LCD TV product manager Pan Bohai this view, although there are more than 72% of the core technology for flat-panel TV in the hands of foreign manufacturers, but because BenQ mastered the core technology of LCD panel, and have the ability to promote a strong channel, brand, will go beyond the traditional TV manufacturers.