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China to enter flat panel TV era this year

Posted: 24 Apr 2009 ?? ?Print Version ?Bookmark and Share

Keywords:China flat panel? LCD? PDP?

The market for flat panel TVs (including LCD and PDP) in China is expected to enjoy strong growth, with a CAGR of 26.7 percent from 2008 to 2012.

Unit shipments of flat panel TVs in China will increase from 13 million in 2008 to 37 million in 2012, and the flat panel share will grow from 32 percent in 2008 to 80 percent in 2012. These and other trends are highlighted in China TV Market: A New Era of FPD TV, a new topical report from DisplaySearch.

The report analyzes the trends and opportunities within the China market, including the status of TV assembly and TV exports, the competition between local and global brands in the domestic Chinese market, analysis of the TV sales channel structure and current status of and future trends for digital TVs. Of particular interest is whether the government subsidy program for rural areas will bring new opportunities for TV brands to tap into the market in tier three to four cities and into the demand for smaller size LCD TVs.

The China TV market is one of the bright spots for flat panel TVs in the current economic environment. There is an installed base of approximately 400 million CRT TVs available to be replaced by flat panel TVs. According to DisplaySearch, flat panel TVs will replace CRT TVs when the FPD price is approximately twice that of a similar-size CRT. This has already occurred in the 30- to 34-inch size range, and the trend is moving down in screen size. Given that 25- to 29-inch CRT TVs account for more than 45 percent of all CRT TVs sold in China, DisplaySearch believes that the Chinese TV market is entering the flat panel TV era in 2009.

Price index of weighted average LCD ASP vs. CRT ASP in China

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