Companies

Sony, Panasonic slash TV prices in China

(Agencies)
Updated: 2010-08-10 10:27

Sharp's flat-panel TVs are on sale in a supermarket in Nantong, Jiangsu province in July. [Photo / Asianewsphoto]

Samsung, Sharp

Japan's Sharp Corp was the top non-Chinese vendor with 4.9 percent, followed by Samsung Electronics Co and LG Electronics Inc of Seoul.

Sony and Panasonic, the maker of Viera-brand TVs, each had 2.4 percent.

"Sony has started to take more serious actions in China," Shima said, citing the December price cut. "We need to become sensitive about changes on products and business models for China."

A price war may reverse the optimism sparked last month after the Japanese companies raised profit forecasts, said Yuuki Sakurai, chief executive officer of Tokyo-based Fukoku Capital Management Inc Sony and Panasonic on July 29 cited better-than expected sales of flat-panel TVs for raising their full-year forecasts, sending shares of both companies higher in Tokyo trading the following day.

Sony projects 60 percent growth worldwide and Panasonic 35 percent.

'Premium Image'

"There's no way Sony and Panasonic can compete with Chinese producers in terms of prices," Sakurai said. "Even the South Koreans are struggling. Chinese consumers aren't very keen on top-quality products."

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Samsung, the world's largest TV maker, said last month that falling set prices may erode profitability this quarter. The company intends to keep prices above those of Chinese producers.

"We will stick to a strategy that will make people aware of our premium image," said Chenny Kim, a spokeswoman at Suwon, South Korea-based Samsung. "We won't compete with local companies in pricing."

Skyworth's annual shipments in China rose 12 percent to 7 million units in the fiscal year ended March 31 from a year earlier, the company said April 19. Revenue from the business rose 55 percent.

Skyworth, whose shares trade in Hong Kong and Shenzhen, isn't concerned about international competitors, said Shen Jian, a spokesman. Brands from abroad account for about a quarter of the TVs sold in China, according to DisplaySearch.