Come 2005 and consumer durables majors are expected to slash the prices of liquid crystal display (LCD) televisions by 40%. The reduced prices are expected to come into force by June 2005.
The fall in prices are on account of the increase in panel production (a key component in the product) and expectations that the LCD television market is expected to at least double in 2005.
In the Asian market, LG, Samsung, Sharp and Philips will increase their panel production from nine million to 50 million units per annum.
Worldwide, the LCD TV market constitutes a mere seven percent of the overall CTV market, which sells 150 million units per annum. In India, all the manufacturers together sell 9,000 units per annum. LCD TVs in India are sold at prices starting Rs 50,000.
Mirc Electronics chairman and managing director Gul Mirchandani confirmed that his company would slash prices by 40%.
Mirc sells its products under the Onida brand name. “We will also set up an assembly line for Onida LCD TVs at our existing manufacturing facility in Wada, where we will initially assemble 40,000 LCD TV units,” he said. He added that Mirc would then get into manufacturing the product.
When contacted, Videocon International Ltd president PN Dhoot said, Videocon is planning to reduce prices of ‘Videocon’ LCD TVs from Rs 50,000 to Rs 25,000 over the next three months.
LG Electronics India vice-president (sales and marketing) Salil Kapoor maintained that his company would look at the reduced price scenario before deciding. “Currently, the base is very small for LCD TVs, since price is the barrier. However, it is not necessary for brands to reduce their prices” he added.
Samsung India Electronics director Ravinder Zutshi also said that his company would be reducing prices in the category. “Keeping in the context of the worldwide trend that prices of LCD TVs will come down, it is likely that Samsung will reduce prices of its LCD TVs by 25% in the next few months,” he added.
According to Haier Appliances (India) president and CEO TK Banerjee, volumes in the LCD TV market will increase in the next six months.
“We have not launched Haier LCD TVs in India. Our pricing strategy for LCD TVs will depend upon the market price and the consumer response.” he said.