China produced more than nine million LCD TV sets in the first
eight months, an increase of more than three quarters.
But domestic manufacturers saw their profits dim as a result of
increased panel costs, the Ministry of Information Industry said
yesterday.
China turned out 9.39 million liquid-crystal-display TVs in the
first eight months, 77.1 percent more than in the same period the
year before.
LCD TV production accounted for 20 percent of China's total TV
manufacturing capacity. The country is the world's biggest producer
of televisions, according to the ministry.
"Flat-panel-display TVs, including LCDs and plasma sets, have
become the first choice of buyers, especially in major cities," the
ministry said in a statement.
SVA Group recently announced it had quit the money-losing
cathode-ray-tube business to focus on the flat-panel-display
sector.
Domestic LCD TV makers, however, are facing a tough time despite
the popularity of the product.
The average profit margin for domestic LCD TV makers is now only
2.3 percent, compared with the electronic industry's overall profit
of 3.5 percent, the ministry said.
As a result of intense competition, LCD TV prices have
plummeted, especially for 32-inch models. Domestic TV makers,
including Changhong, TCL and Skyworth, are facing problems as
upstream LCD panel costs have risen and supplies have dwindled.
For example, a 32-inch LCD panel is expected to cost US$319 in
the third quarter compared with US$303 in the second quarter and
US$305 in the first quarter, according to DisplaySearch, a US-based
research firm.
"In addition to suffering the price increase for LCD panels,
domestic makers are finding it difficult even to get them," said
Zhang Bing, a senior analyst at DisplaySearch.
New products such as public advertising displays and digital
photo display frames have fueled the demand for LCD panels.
Meanwhile, most panel makers are preparing for Christmas orders,
Zhang said.
(Shanghai Daily October 8, 2007)
