International brand vendors have cut prices by 20-30% recently for the mid-autumn festival and the labor day holidays in early October, according to channel companies, adding that the market share of foreign vendors is expected to rise from 30% in 2009 to 60%.

Both domestic and international brand vendors have kicked off their sales program for the holidays, and some retailers reportedly sold 200 TVs in an hour.

Sources from the Chinese TV industry pointed out that the market is particularly chaotic this year. Historically, early May and early October is an adjustment period and prices do not fall significantly until right before labor day. However, inventory digestion coupled with product transition have pushed forward the price cuts.

Prices for 32-inch LCD TVs took a dive from June to August, falling to 3,100 yuan, 3,000 yuan and 2,950 yuan each month, respectively, compared with 3,300 yuan, 3,400 yuan and 3,370 yuan from a year ago, according to China Electronic Chamber of Commerce (CECC).

International brand vendors Sharp, Samsung Electronics, LG Electronics and Sony have cut prices for 32-inch LCD TVs to below 2,000 yuan and 42-inch models to under 3,900 yuan. Some models are even lower than those offered by domestic vendors.