China-based TV vendors' LCD TV sales during the Lunar New Year holidays increased to 64% of total sales in the China market, while first-tier vendors' sales dropped to 36%.
Overall TV sales during the Lunar New Year holidays in 2011 totaled 3.19 million units, up 17% on year, of which 2.75 million units were LCD TVs, an increase of 28% on year, according to China-based All View Consulting (AVC).
The main reason China-based vendors to took the lead in sales was that demand from rural areas is picking up, giving local players the advantage in county- and township-level cities. LCD TV sales from rural areas increased 32%.
Sales of LED-backlit TVs, especially for 26- and 32-inch models, increased significantly and also helped to increase the market share of China-based vendors. Furthermore, China-based vendors lowered the price of a 32-inch CCFL-backlit model to CNY2,000 (US$303.84), while a 32-inch model from first-tier vendors cost CNY3,249.
The increase in sales of China-based vendors will help to generate panel shipments for Taiwan makers.
Unlike sales during the Labor Day holidays in May and the National Day holidays in October when larger-size models dominate the market, the share of small- to medium-size TV sales during the Lunar New Year holidays in 2011 increased. AVC noted that sales of 37-inch and smaller models accounted for 56% of the total sales during the period. The main reason for the increase was the government's rural subsidy program.
Taiwan panel makers indicated that increased sales share of China-based vendors will help to increase shipments of Taiwan panel makers such as AU Optronics (AUO) and Chimei Innolux (CMI). TV panel prices already dropped to their bottom, and will possibly stay low in February, but may start to recover in March or April due to demand during the Labor Day holidays in May.
Plasma TV sales during the Lunar New Year reached 180,000 units, up 30% on year.