Samsung cuts prices of DLP-TVs sold in Taiwan by 35%

Taipei, Jan. 28, 2005 (CENS)--Samsung Electronics of South Korea has announced a 35% cut on the retail price of a 50-inch digital light processing (DLP) rear-projection TV model sold in Taiwan, triggering a new price war among local, Korean and Japanese large-sized digital TV brands.

Samsung recently cooperated with Tsann Kuen Enterprise Co., a leading 3C (computer, communication, and consumer electronics) distribution chain in Taiwan, to cut the price of a 50-inch DLP rear-projection TV model to NT$109,000 (US$3,417 at US$1: NT$31.9) from NT$169,900 (US$5,326) before.

Tsann Kuen's vice president Tian Chu-yin said that large-sized digital TVs have become mainstream models for consumers to replace their old TVs; and Samsung has fully recognized that the over-NT$100,000 (US$3,135) price level is too high to stimulate a buying spree among consumers.

Samsung Taiwan president Kao Yu-tsan estimated that domestic sales of rear-projection TVs would grow by 50% in 2005 to reach 5,000 to 6,000 units, with Samsung aiming to grab a one-third share of the local market with sales of 1,500 units this year, Kao said.

Matsushita Electric (Taiwan) Co., Ltd. Recently also announced that its parent firm in Japan has decided to have all of the under-32-inch (included) LCD TVs sold in Taiwan produced on the island to boost cost competitiveness. Matsushita Taiwan also claimed that its new 32-inch LCD TV model would be priced at only NT$69,900 (US$2,191), much lower than the prices of imported Sony and Sharp similar models

Panasonic Consumer Sales (Taiwan) Co., Ltd. (PCST) president Chen Shih-chang stressed that the era of digital-TV entertainment has come, with large-sized TVs with set-top-boxes (STBs), high picture quality and Hi-Fi video quality to become mainstream models. Chen predicted the annual sales in the domestic LCD TV market to double to 200,000 units this year, mostly available with large-screen displays.

In late 2004, LG Taiwan cut the price of a 42-inch Video Graphics Array (VGA, 640 x 480 pixels)-grade plasma display panel (PDP) TV model to NT$109,000 (US$3,417) from NT$149,000 (US$4,670), and enjoyed good sales-promotion effect. The Korean brand also launched a 32-inch LCD TV model at a unit price of only NT$79,900 (US$2,504), widening the price gaps with counterparts from Sony and Sharp.

Local V-Tek Techology Co., Ltd. (Vtek brand PDP TVs) recently also pushed a PDP TV model at the price of less than NT$50,000 (US$1,567) per unit, in cooperation with Tsann Kuen.

Tatung Co. and Top Powersonic Co. Ltd. Have launched competitively-priced 30-inch LCD TV models since late 2004, and their sales of such models have fared well.