LCD TV: increase and increase LEDs are getting better

According to statistics from Zhongyikang, the sales volume of LCD TV market in China from January to May this year was 7.025 million units, up 41.89% year-on-year; sales were 31.89 billion yuan, up 33.42% year-on-year. In the first half of last year, the sales volume of China's LCD TV market increased by 72.2%, and sales increased by only 6.7%. In contrast, although the growth rate of LCD TV sales in the first half of this year has decreased, but the sales growth has increased significantly, LCD TV companies have got rid of the dilemma of increasing revenue. The reason for this, the rapid spread of LED (light-emitting diode) TV can be described as a great achievement.

LED TV entered an outbreak

Last year, the problem of no increase in revenue has been plaguing color TV companies. According to Zhongyikang data, from January to May 2009, the retail sales of LCD TVs in China reached 4.895 million units, up 72.2% year-on-year; the retail sales reached 23.66 billion yuan, up only 6.7% year-on-year. Experts analyzed that in the first half of 2009, the LCD TV market did not increase its revenue. The most direct reason is that the average price of LCD TVs has fallen too fast. Under this circumstance, how to increase the added value of products has become a top priority for manufacturers.

Since the second half of last year, new products such as LED TVs and Internet TVs have emerged in an endless stream, and LCD TVs have entered a new round of replacement. According to data from Zhongyikang, from May 2009 to May 2010, LED TVs accounted for a growing share of all LCD TVs, namely: 1.05%, 1.60%, 2.22%, 2.26%, 3.11%. , 4.06%, 5.33%, 7.16%, 9.05%, 9.00%, 9.88%, 16.08%, and 19.70%.

The rapid spread of LED TVs has also brought benefits to the company's revenue in the first half of this year. According to a recent global TV shipment survey report by market research firm DisplaySearch, based on last year's global LED-backlit LCD TV shipments of 3.6 million units, this year, with the continued decline in LED backlight module prices, LED-backlit LCD TVs Shipments are expected to reach 35 million units, accounting for 20% of the world's 180 million LCD TVs. However, for the Chinese LCD TV market, which is in volume, DisplaySearch's research data is slightly conservative. The Chinese LCD TV market has reached 20% in May this year.

Zhongyikang data shows that from January to May this year, China's CCFL (Cold Cathode Lighting) LCD TV sales were 6.634 million units, an increase of 33.86%; LED TV sales volume was 400,000 units, an increase of 8278.13%. In terms of sales, from January to May this year, China's CCFL LCD and other TV sales were 27.8 billion yuan, an increase of 16.81%; LED TV sales of 4.1 billion yuan, an increase of 3059.48%.

The reporter found that the expansion of the LED market has a direct relationship with the decline in product prices. Sun Weizhong, executive vice president of Skyworth China Marketing Center, told reporters that LED-backlit LCD TVs have obvious advantages in ultra-thin, energy-saving and full HD technologies. The price/performance ratio has far exceeded CCFL LCD TVs, and the price gap between the two companies will gradually narrow. This is the main reason why Skyworth is rapidly promoting the popularity of LED-backlit LCD.

Xie Qinyi, vice president of Displaysearch Greater China, told reporters in an interview: "The price difference between the 40-inch LED backlight module and the same size CCFL in the first quarter of this year dropped from 140 US dollars in the fourth quarter of last year to 100 US dollars, until the end of this year. The spread between the two sides will drop to less than $40."

The views of Sun Weizhong and Xie Qinyi were also supported by the data. We take Samsung, which currently accounts for 33.95% of LEDs, as an example. From January to May this year, the average price of LCD TVs was 7,482 yuan, 6,017 yuan, 6,867 yuan, 6510 yuan and 6,504 yuan, down nearly 1,000 yuan.

Domestic brands stand firm

Last year, domestic brands changed the overall LCD TV market with price advantage. The market share ratio of domestic color TV brands and foreign color TV brands changed from 4:6 in 2008 to 7:3 in 2009. Some people think that with the popularity of LED TV in 2010, domestic brands will not be competitive, and market share will fall sharply.

However, the data proves that domestic brands not only maintain a high sales volume, but also significantly improve their profitability without the upstream advantage of the industrial chain. Zhongyikang data shows that from January to May this year, the domestic brand LCD TV sales volume was 4.687 million units, with a market share of 66.62%; domestic brand LCD TV sales were 18.07 billion yuan, and the sales share was 56.68%.

Although domestic brands fell by 4 percentage points compared with the market share of 70.6% from January to May last year, domestic brand sales increased by 1 percentage point from January to May this year. This shows that the domestic brand's profitability has improved significantly.

From January to May this year, the top ten manufacturers in terms of retail volume share were: Hisense (14.42%), Skyworth (13.4%), TCL (11.7%), Konka (10.89%), Sharp (8.12%), Changhong (9.58). %), Samsung (6.98%), Sony (6.6%), LG (5.51%) and Haier (5.45%), of which domestic brands accounted for 6 seats. This ranking has not changed much from last year. From January to October last year, the top ten manufacturers in terms of retail volume share were: Hisense (16.96%), Skyworth (15.56%), TCL (12.25%), and Konka (11.77%). Changhong (7.46%), Sharp (6.96%), Samsung (6.06%), LG (5.40%), Haier (5.13%) and Sony (4.51%).

In terms of sales, domestic brands have exceeded 13% of foreign brands. From January to May this year, the top ten manufacturers in terms of retail sales were: Hisense (13.79%), Skyworth (11.78%), Sharp (11.23%), Samsung (10.56%), TCL (9.67%), and Konka (8.73). %), Sony (8.08%), Changhong (7%), LG (6.79%) and Haier (5%). Among them, due to the adjustment of product structure, Samsung’s sales ranking jumped from seventh to fourth.

It can be seen that the higher the proportion of corporate LED TVs, the greater the effect of sales growth. Therefore, from the point of view of sales, Hisense, Skyworth, Sharp and Samsung, which account for a relatively high proportion of LED TVs, have become the biggest winners.

At present, among the domestic brands, Hisense LED TV sales accounted for the largest share, at 26.21%; Skyworth ranked second with 24.56%; Haier ranked third with 15.75%. Among foreign brands, Samsung LED TV ranked first with 33.95% of sales, Sharp ranked second with 25.86% of sales, and Sony ranked third with 19.62% of sales.

Break through the upstream and challenge again

Last year, domestic enterprises have achieved outstanding results in extending to the upstream of the industrial chain. The concentration of a series of projects has greatly enhanced the voice of China's color TV enterprises. These include the 8th generation LCD panel production line project invested by BOE in Beijing, the 6th generation LCD panel production line project of Nanjing Municipal Government, China Electronic Information Industry Group Co., Ltd. and Sharp Corporation of Japan, and the high generation line project of Kunshan LCD panel and deep Super Company and TCL Group invested 5 billion yuan to build the 8.5th generation LCD panel production line project.

However, with the continuous expansion of the LED TV market, the problems of Chinese companies have come again: the shortage of LED upstream products.

The reporter found that the current supply of LED TV backlights is not smooth, many new LED-backlit LCD TVs have been delayed, and panel manufacturers have even increased the price difference between LED and CCFL backlights.

Since April 2010, major LED panel suppliers Samsung, LG Display, Sharp, AUO and New Chimei have requested to increase the price of LED-backlit LCD TV panels while maintaining or reducing the price of CCFL-backlit LCD TV panels. As the target brands' aggressive shipment targets for LED TVs force them to get more LED-backlit LCD TV panels, for now, Chinese color TV companies may not have any choice but to accept higher LED panel spreads.

According to Displaysearch data, in April 2010, the price of LED-backlit LCD TV panels of 32-inch, 40-inch, 42-inch, 46-inch, 47-inch and 55-inch models increased by an average of $5.

Faced with this problem, domestic enterprises know that it is impossible to solve the problem by simply relying on the market scale for the right to speak. Therefore, this year, Hisense, Konka, Tsinghua Tongfang and other companies are actively involved in the middle and upper reaches of the LED industry.

Among them, Hisense played the role of "emergency". Recently, at the IEC/TC110 annual meeting held in Japan, the Chinese delegation introduced a new proposal for LED backlight sub-specification drafted by Dr. Liu Weidong, a senior scientist of Hisense Electric. The meeting finally decided to lead the drafting of the standard by Liu Weidong. At the same time, it was confirmed that Liu Weidong and the Korean experts jointly led the drafting of the general standard of backlighting, and discussed the definitions of terms including the relevant standards, test methods and details of standard setting work.

It is understood that the development of the LED backlight standard under the responsibility of Liu Weidong has just begun, and it will take at least two or three years for the standard to be officially introduced. Liu Weidong said that Hisense only took the lead in drafting the series of standards, and hoped that other domestic color TV companies would also participate in the promotion of standards development. At present, in addition to Hisense, domestic mainstream color TV companies are interested in participating in the standard setting work.

Reporter comment

LED industry upstream needs to break through

The outbreak of the LED TV market has brought opportunities to domestic color TV companies and brought them troubles. After making breakthroughs in LCD panels, companies are now facing a shortage of LED chips. To solve this problem, it is far from enough to directly integrate the industrial chain by the terminal color TV enterprises. This requires the upstream and downstream enterprises to work together to form a synergy.

At present, the LED upstream industry is showing a good trend, and the number of domestic companies involved in LED upstream chips is increasing. However, in order to truly achieve the breakthrough of the LED upstream industry, the following problems still need to be solved: First, the core technologies with innovative and independent intellectual property rights are still few, and it is difficult to compete with foreign counterparts. Second, there are many domestic LED epitaxes and chips. The research results are difficult to promote and apply in enterprises; the third is the domestic LED epitaxy, the industrialization scale of chip companies is small, the enterprise research and development strength is insufficient, the product cost is high, and the lack of competitiveness; the fourth is the emergence of China's development of the upstream LED industry. The regions are each fighting, repeating construction, closing each other and vicious competition.

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