China TV vendors are expected to release more high-end units in 2014 as TV demand in the nation is expected to be flat on year.
China saw strong TV shipment growth throughout 2012 into the first half of 2013, but the momentum then started to fade as energy-saving subsidies issued by the China government that provide LCD TV purchase funding came to an end.
As China's TV market is expected to be flat on year, with some market observers even speculating the nation could see on-year declines, TV vendors are pushing high-end units such as Ultra HD to attract customers and maintain profits.
The China vendors are looking to low-cost solutions from China supply chain sources in order to keep Ultra HD pricing down and are continuing to form alliances, most notably with panel makers, which are likely to provide entry-level Ultra HD TV panels at about 1.2 times the cost of Full HD TV panels during 2014.
The market penetration rate for Ultra HD TVs in China in 2013 reached 4% while the smart TV penetration rate reached 50%. Both percentages are expected to increase in 2014.
As smart TVs and Ultra HD TVs continue to grow in sales in the China market, vendors are also looking to release more larger-size units, such as 50-inch and above sizes to maintain profits as well, the observers added.
Despite the increase in sizes and specifications, some vendors' pricing are going down in order to stay competitive so it will be difficult to see whether the vendors can report significant performances in 2014, the observers noted.
Meanwhile, OLED TVs are expected to see limited sales in the China market during 2014.
About 45 million TVs were sold in China during 2013. | 