China's home appliance giant Konka Group Co., Ltd. announced that it will list more than 30 new LED TVs in the 6 series during the National Day.
According to industry statistics, the market share of Konka LED-backlit LCD TVs rose from 7.1% at the beginning of June to 13% at the end of August, and the market ranking also rose from the sixth to the top three in the industry. As of August, in 2010, LED TVs added 171 new products, accounting for 39% of the listed models.
Konka achieved sales revenue of RMB 7.94 billion in the first half of the year, a year-on-year increase of 53.52%. The rapid spread of LED TV is the main reason why Konka attaches importance to the development of LED TV market.
However, with the continuous adjustment of the price of liquid crystal panels, it also brings certain pressure to domestic machine companies. The price reduction of LCD panels can reduce the procurement cost of color TV enterprises. However, China's color TV giants are well stocked in the early stage, and they are also facing the pressure of “price reduction†caused by foreign brands.
Since Q2 in 2010, foreign color TV brands have adopted unprecedented price reduction measures in the terminal. The gross profit margin of Chinese brand products has been rapidly lowered, resulting in a 2.72% drop in gross profit margin of the Konka color TV business in the first half of the year to 15.54%. Although the market share of Konka LED TV increased rapidly, the sales revenue in the first half of the year increased by more than 50% year-on-year, but its net profit fell by nearly 40%.
In order to seize market share, the price of LED color TVs has also dropped greatly. The popularity of LED TVs can bring much benefit to Konka, and it is still unclear.
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