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Research and Markets: the Tendency for Low-End Color Televisions towards Homogenization Has Given Rise to the Extreme Reduction of Profits and the Price Wars in China.

DUBLIN, Ireland -- The Chinese Manufacturers of Low-End Color Television Sets Have Been Experiencing Hardship in the Recently Years Due to Lack of Core Technologies. the Tendency for Low-End Color Televisions towards Homogenization Has Given Rise to the Extreme Reduction of Profits and the Price Wars; the Chinese Color Television Industry Does Not Possess Upstream Resources and No Any Complete Industrial Chains at All. the Research and Development of IC Of Analog TV Demands a Large Amount of Capital, Human Resources, and Time Investment, and Also Needs the Strong Supports from Semi-Conductor Industry. However, There is No Enough Support from the Semi-Conductor Industry, and No Enterprise is Willing to Invest Human Resources, Capital, and Time in the Technical Field.

Research and Markets (http://www.researchandmarkets.com/reports/c9507) has announced the addition of 2004 Research Report on High-End Television Market And Industrial Chain to their offering.

The design of every one of the CRT TV in China is based on the foreign design. Chinese color TV manufacturers actually provide the large-scale assembly lines in the midstream and downstream of the industrial chain. Consequently, when the low-end color televisions become high homogeneity, the price wars are unavoidable.

The Chinese color TV manufacturers had once seen some hope due to the promotion of exports, but the rise of the prices of the raw materials in 2004 again place the Chinese color TV production industry in an unfavorable environment. The key spare parts of low-end color TV are glass bulb, deflection coil, iron and steel, and ABS engineering plastic, whose prices all are increasing. The major raw material of glass bulb is glass; most of the glass bulb production enterprises have built their production centers in China , which has the largest market and cheap labor. The glass is mostly purchased in China, but the price of glass keeps rising because of the rapid development of real estate industry, urban infrastructure sector, and automobile industry. The rise of the price of the raw materials can surely be reflected in the products, which means the price of glass bulb is also rising correspondingly. The major component of deflection coil is copper, which price was, from the beginning of 2004 to the first days of March 2004, rapidly increased by 30%. The highest price in the London Mental Exchange was $3055 per ton, a record high in eight years. ABS engineering plastic uses petroleum as its key raw material; the price of oil has been skyrocketing due to the uncertain situations in Iraq, which hit a 21-year record high. Since the situation in Iraq will still be tense in future, the OPEC will restrict the output of oil.

In turn, the petrochemical industry will inevitably increase the price of ABS because of the pressure from the price increase of oil. The price of steel is also going up quickly; the real estate industry, infrastructural construction, and automobile industry have all witnessed the rapid growth, and the demand for steel far exceeds the supply, therefore, the price rise becomes unavoidable.

Compared with low-end color TV, high-end color TV surely has handsome profits. The gross profit of low-end color TV is lower than 8% while that of the high-end ones is 15% at least. The Chinese color TV production enterprises, long haunted by the problem of low profits, will surely seek for their chances in the high-end field.

The success in the high-end color TV market requires two preconditions: one, the availability of the upstream resources; second, the understanding of the brand resources. The channel resources and low labor costs are not very important factors.

The contents of this report are as follows:

Chapter 1 The Current Situation of High-end TV Industry and its Tendency Analysis

Chapter 2 Market and Manufacturers of PDP TV

Chapter 3 Market and Manufacturer of Rear Projector TV

Chapter 4 Market and Manufacturer of LCD-TV

Chapter 5 Major IC industry of High-end TV

Chapter 6 Analysis of Major TV Manufacturers and the Market in China

For more information visit http://www.researchandmarkets.com/reports/c9507
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Publication:Business Wire
Date:Nov 23, 2004
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