China: CRT TV to disappear from stores

Twelve Chinese and foreign color TV manufacturers including Philips, LG, Samsung, Hitachi, Sharp, National, HiSense, Haier, Skyworth, TCL, Changhong and Xiahua, jointly announced in Beijing recently t…

Twelve Chinese and foreign color TV manufacturers including Philips, LG, Samsung, Hitachi, Sharp, National, HiSense, Haier, Skyworth, TCL, Changhong and Xiahua, jointly announced in Beijing recently that CRT color TV sets will be withdrawn from all large electrical appliance stores in China before 1 October 2007. In line with the rise of capacity for flat screen TVs, production costs have fallen to the point that CRT TVs are no longer competitive. The “2Q Report on the Supply and Demand of Flat TV Sets in Urban Area in China” published by the State Council Research Center Market Research Institute backs up the announcement. In the 1H 2006, sales of flat screen TVs in China reached 2.121 million sets, exceeding the total sales volume in 2005. Sales are expected to grow more quickly in the 2H 2006. A study in first-class cities including coastal cities shows that flat TV sets have become the mainstream of the market. Sharp, Sony, Philips, Samsung and LG have all confirmed that they will stop selling CRT TV sets in 2006. As for Chinese makers, though Haier, HiSense and Skyworth are still producing CRT color TV sets, they admit that CRT color TV sets no long have any market prospects. Large electrical retailers are also ready to stop selling CRT TV sets. Suning“s Changyang outlet will open in late September 2006, and will be the first outlet not to sell CRT color TV sets. Suning says it will stop selling CRT TV sets after 1 October 2007.