In 2008, total TV shipments in China are expected to grow 4% to 41 million units, but CRT TV shipments in the country are forecast to drop from 30 million units in 2007 to 24 million units in 2008 while shipments of flat panel (FPD) TVs will reach 17 million units during the year, according to DisplaySearch. In 2007, most non-Chinese foreign brands left the CRT TV business in China, but priced FPD TVs more aggressively than before.
China flat panel display (FPD) TV shipments reached a record high of 9.6 million units in 2007, including 8.8 million units of LCD and 0.8 million units of plasma display panel (PDP) TVs, noted the research firm. In 2007, LCD TVs and PDP TVs in China grew by 83% and 43%, respectively, on year.
"There had been at least a 30% pricing gap between foreign brands and domestic players, but it decreased to less than 20% in 2007," indicated Bing Zhang, TV market research director for DisplaySearch in China. Foreign brands, like Samsung and Sony, exhibited strong growth in FPD TVs, with a unit shipment share of 40.1% in 2007, up from 33.6% in 2006. The shares of domestic players of FPD TV shipments decreased from 66.4% in 2006 to 59.9% in 2007. Hisense and Samsung topped the domestic and foreign brands with unit shipment shares of 12.1% and 7.2%, respectively.
The average selling price (ASP) of 32-inch LCD TVs decreased less than US$800 at the end of 2007, noted DisplaySearch. Thirty-two inch LCD TVs remain the mainstream product with a 33% market share in China. Shipments of LCD TVs smaller than 26-inches and larger than 40-inches grew moderately in 2007 while those for 19-inch widescreen and 22-inch widescreen LCD TVs, which use adapted LCD monitor panels, grew rapidly. For large-size 40-42 inch LCD TVs, shipments expanded quickly as the LCD TV brands allocated sufficient panels from seventh generation (7G) TFT LCD plants in Asia. In 2007, the 40-42 inch segment accounted for 25% of the total LCD TV market in China while the 46-47 inch LCD TV segment captured an 8% share.
In the selling season of the fourth quarter of 2007, 32-inch ED PDP TVs grabbed 26% of all PDP TV shipments in China in 2007 due to aggressive promotions (less than US$666 ASP) by leading domestic TV brands such as Hisense, Changhong, Haier and Konka. The mainstream size for PDP TVs remained the 42-inch segment with a 52% share. Although several brands introduced 52-inch LCD TVs, a large price gap of approximately US$1,350 between 52-inch LCD TVs and 50-inch PDP TVs influenced many buyers to shop for the less expensive 50-inch PDP TVs.
According to Bing Zhang, the China FPD TV market will exhibit a 29% compound annual growth rate (CAGR) from 2007 to 2012. The main driving forces are big events, like the Beijing Olympic Games in 2008 and the World Expo in Shanghai in 2010, as well as anticipated rapid declines of FPD TV prices. FPD TV shipments in China will reach 17 million units in 2008, split between 15.5 million LCD TVs and 1.5 million PDP TVs. "2009 will be the year when LCD TVs will surpass CRT TVs in China for first time," Zhang added. DisplaySearch also forecasts that rear projection TVs will fade away from the China market after 2009.
The China FPD TV market will continue to move to larger sizes and higher definitions such as 1080p (full HD). The average size of LCD TVs is expected to increase from 34.4-inches in 2007 to 36.1-inches in 2012. PDP TVs will grow from 41.6-inches in 2007 to 44.7-inches in 2012. Meanwhile, the share of 1080p LCD TVs is expected to increase from 10% in 2007 to 40% in 2012, and 1080p PDP TVs will increase from 2% of all PDP TVs sold in China in 2007 to 30% in 2012.