Samsung Denies TV Price War: Will Increase Plasma Sales

Earlier media reports that Samsung will launch low-cost flat-panel TVs this year to seize the low-end market, in order to increase sales of color TV from last year's 43 million units to 50 million this year. Yesterday, Li Mingxu, Samsung Electronics Marketing Minister of Samsung Electronics, denied to “First Financial Daily” that Samsung’s price war on flat panel TVs.

Samsung has been promoting its inexpensive LED-backlit LCD TVs in Beijing, Guangzhou, Shanghai, Chengdu, and Shenyang for five consecutive days starting from February 28th to fully replace the traditional CCFL backlight LCD TVs. Its lowest-end 32-inch LED this year is priced at 3199 yuan, although it is about 2700 yuan more than its 32-inch LCD TV, but it is 800-900 yuan cheaper than its 32-inch ultra-thin LED.

Samsung's launch of low-cost competition in the field of LED TV may be the true connotation of the so-called "samsung color TV price war."

Li Mingxu said that China’s color TV market has 540 million units, flat-panel TVs accounted for 140 million, and 400 million were CRT TVs. The penetration rate of flat-panel TVs was 31%. It will take 10 years if ordinary people replace the CRT at a rate of 40 million units per year. Moreover, the television ownership per 100 households in rural China is 109, while the number of TVs per 100 residents in urban areas is 1.4 million, and the gap between rural and urban areas is 10 years. "So, each color TV company attaches great importance to the Chinese market."

Samsung TV ranks fifth in China’s sales ranking last year, which is far from being ranked first in terms of global sales. Li Mingxu frankly stated that Samsung will expand its sales of plasma TVs in China this year and use LEDs instead of traditional LCDs. “Renewal can also drive sales growth.”