904000 plasma TVs have been sold during the first three months of 2005. This represents an 87 pct increase over Q1 2004. However, revenues progressed only by 41 pct during the same period, at 2.8 Billion US Dollars.
The price battle has become very intense in all segments of the flat TVs market, but the decrease in prices has been particularly strong in the less than 32-in LCD market. On the plasma market, sizes of 40, 42 inches represent more than 75 pct of sales, while smaller dimensions are largely taken over by LCD TVs.
Geographically, China’s position has surged to 15 pct of the global market against 9 pct last year. Europe and the US represent respectively 33 pct and 32 pct, while Japan has come down to 6 pct against 12 pct last year.
No wonder then why firms like Hitachi (JP:6501) have announced plans to double
capacities in China, where they have developed a 78/22 Joint Venture with
local partners.